Oil and gas exploration firm Tower Resources has secured a £500,000 (N$11.8 million) unsecured, fixed-price convertible bridge loan from Prime Resources Limited (PR) to provide working capital flexibility as it finalizes farm-out agreements in Namibia and Cameroon.
The loan, which carries a 12-month term, is convertible into ordinary shares at a fixed price of 0.05588 pence per share—representing a 100% premium to the average of the five daily VWAPs prior to the agreement.
Tower Resources Chairman and CEO Jeremy Asher highlighted the significance of the funding, stating that it ensures the company remains on course with its operational plans.
“The purpose of the bridge loan is to provide the company with working capital flexibility in preparation for the drilling of the NJOM-3 well on the Thali license in the event that completion of the Cameroon and Namibia farm-out agreements, announced on 10 January 2025, takes longer than expected,” Asher said.
He reiterated Tower Resources’ confidence in securing necessary government approvals and noted that the company is already mobilizing equipment and staffing to avoid delays once approvals are finalized.
As part of the loan terms, a 5% cash implementation fee is payable upon drawdown, with an annual interest rate of 15%, accrued daily and payable upon maturity.
Tower Resources retains the right to prepay the loan with accrued interest if its share price remains below the fixed conversion price. If the share price surpasses the conversion threshold, the lender has the option to either convert the loan into shares or opt for early cash redemption.
While the loan remains unsecured, Tower’s operational subsidiaries have provided corporate guarantees, including standard default provisions.
The company continues to push forward with its farm-out negotiations and drilling plans in Namibia and Cameroon, aiming to advance its offshore exploration efforts.
