News

September 30, 2009

Tower Resources Raises £7 Million After Consultants Point To Overlooked Potential In Its Ugandan “Duster”

Tower Resources has raised £7 million through a placing of 350 million new ordinary shares priced at two pence per share, giving the Africa-focused explorer the financial headroom to fund its second all-important well in Uganda in the event it finds itself bereft of partners willing to take a punt on the prospectivity of its EA5 licence.

Followers of the AIM company will be only too aware that its hopes of emulating Tullow Oil’s string of discoveries in Uganda took something of a battering this summer when the Iti-1 well came in dry, giving its partner in EA5, Australia’s Global Petroleum, the right to pull out of the second commitment well on the licence. Tuesday’s highly dilutive fundraising, which represented 34.7 per cent of the company’s enlarged issued share capital, means Tower now has the resources to drill that...