The AIM-listed oil and gas company Tower Resources has expanded its bridge loan with Gibraltar-registered private investment company Prime Resources.
Thanks to the extension, the £500,000 loan announced on March 26, 2025, will be increased by 50%, amounting to £750,000. The term is up to 12 months from the original drawdown, which is March 25, 2025, and convertible into ordinary shares at a fixed conversion price if not prepaid earlier.
As disclosed, the material terms of the loan comprise a 5% cash implementation fee payable on drawdown and interest of 15% per annum or pro rata until repaid, accrued daily and paid on the maturity date.
Tower Resources Chairman & CEO, Jeremy Asher , said: “The purpose of the Bridge Loan remains to provide the Company with working capital flexibility in preparation for the drilling of the NJOM-3 well on the Thali license in Cameroon. We are now expecting completion of the Cameroon farm-out shortly, however, with the Admarine 510 rig scheduled to be in Cameroon in October, we need to proceed with the contracting of other services.”
The company recently picked the Admarine 510 rig owned by ADES to drill the NJOM-3 well on the Thali license in Cameroon in Q4 2025.
Asher also said the company is making progress towards the completion of the farm-out of PEL96 offshore Namibia, adding that updates for both projects would be provided in due time.
Following last year’s farm-out discussions with interested parties for the Thali production sharing contract (PSC), Tower recently agreed to sell non-operated interests in PEL 96 and Thali to Prime Global Energies in exchange for a cash contribution towards the Thali work program and drilling of the NJOM-3 well in 2025.