By Anthony O. Goriainoff
Shares in Tower Resources fell Tuesday after the company said it will raise 2.3 million pounds ($2.9 million) via a discounted placing and a subscription.
The company said it will use the proceeds toward its work program commitments in Namibia, Cameroon and South Africa.
Shares at 0725 GMT were down 0.06 pence, or 54%, at 0.05 pence.
The Africa-focused oil and gas company said it will place around 4.60 billion new ordinary shares at 0.05 pence a share, representing a discount to Monday’s closing price of 0.11 pence a share.
As part of the placing, Chief Executive Jeremy Asher entered into a subscription agreement for 100,000,000 shares for GBP50,000.
Meanwhile, Tower Resources said Cameroon’s prime minister has told the company he has instructed the country’s minister of mines, industry and technological development to take the measures needed to speed up the company’s license extension process.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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