Tower Resources says it is approaching the final stage of securing government approval for its farm-out transaction in Namibia while raising N$8.7 million (£400,000) in additional funding to support operations pending the completion of key agreements.
The AIM-listed oil and gas company announced on Wednesday that it expects ministerial approval for the Namibia farm-out transaction “any day”, following ongoing engagements with the Ministry of Industries, Mines and Energy and the Upstream Petroleum Unit in the Office of the Presidency.
According to Tower Resources Chairman and Chief Executive Officer Jeremy Asher, officials recently requested proof of payment for the transfer fee and copies of documents that were missing from the Ministry’s records. Although the approval letter was not issued this week due to the Minister’s schedule, the Ministry indicated that it would provide a response no later than 1 July 2026.
“We are pleased to be making progress on both approval processes, even though we wish they were already completed. It is important to remember that even a straightforward farm-out proposal requires substantial government due diligence involving multiple departments, and we are grateful to all the individuals who have contributed to this process,” Asher said.
Asher said the approval letter is the final outstanding condition required to complete the Namibia farm-out transaction with Prime Global Energies Limited.
Other licence holders have already been notified of the transaction and have declined to exercise their pre-emption rights.
Once approval is received, Tower expects to issue a notice of completion to all parties, paving the way for the transaction to be finalised shortly thereafter.
“We are not the only company to have experienced delays in approval processes in Namibia, particularly for the reasons I explained in our preliminary results statement. However, it is clear to us that the new structure at the Ministry and the Upstream Petroleum Unit is much improved, and we believe this reorganisation will benefit the industry in the longer term,” he said.
To strengthen its financial position while awaiting completion of the transaction, Tower has raised approximately N$8.7 million (£400,000) through the issuance of 2.5 billion new ordinary shares.
The company said the additional capital will provide working capital during the interim period, as funds expected from the farm-out agreements may take several weeks to be received even after the transactions are completed.
Tower has also granted warrants over 62.5 million shares to its broker, Axis Capital Markets Limited, for arranging the fundraising.
Following the share issue, the company’s enlarged share capital will increase to approximately 42.8 billion ordinary shares.
