REG - Tower Resources PLC - Cameroon Financing Update

Tower ResourcesAnnouncement

21/11/2022 07:00

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RNS Number : 9823G  Tower Resources PLC  21 November 2022

21 November 2022

Tower Resources plc

("Tower" or the "Company")

Cameroon Financing Update

 

Tower Resources plc (AIM: TRP.L), the Africa-focused energy company, is
pleased to provide an update on its financing activity in respect of its Thali
Production Sharing Contract (PSC), in the Rio Del Rey sedimentary basin
offshore Cameroon.

 

Cameroon Financing:

 

Tower is pleased to announce that its subsidiary, Tower Resources Cameroon S.A
("TRCSA"), has been notified by BGFI Bank Group ("BGFI"), the largest bank
group in Central Africa, that the medium term loan of approximately US$7
million for which TRCSA and BGFI agreed a term sheet at the end of June 2022
(the "Loan"), has been approved by the credit committee of the Cameroon bank.
Further approval is still required at the BGFI group level and discussions are
now turning to the details of the structure and documentation, as well as a
potential modest enlargement of the facility.

 

Whilst the Company aims to complete these discussions as quickly as possible,
it cannot be certain of when final approval will be received, if it is
successful.

 

As previously disclosed, the Loan should cover around 40% of the approximate
US$18 million cost of the well, with a further amount of 25% already having
been paid for by TRCSA. The balance of 35% of the cost of the well is also to
be funded by TRCSA. This balance may be funded by further financing at the
asset level, or with corporate funds.

 

The Company is continuing to discuss additional financing options at the asset
level, including with BGFI. The Company's current plan is to complete the Loan
financing documentation, if possible, before seeking to conclude any further
bank discussions.

 

 

Jeremy Asher, Tower's Chairman and CEO, commented:

 

"We are very happy with the progress in our discussions with BGFI Bank Group,
and the support that the local bank has shown towards our project in Cameroon.

 

"Discussions regarding the rig options with suppliers and other operators are
also continuing as expected. As previously announced, long lead items for the
well have already been purchased, and the environmental and social impact
assessment, site survey and site debris survey are complete. Therefore, we are
in a position to move quickly once a rig slot is finalised.

 

"We remain very confident that we will be able to drill the NJOM-3 well in
good time and thank our shareholders for their patience while we seek to
conclude these discussions."

 

 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

Contacts:

 

 Tower Resources plc                  +44 20 7157 9625

 Jeremy Asher

 Chairman & CEO

 Andrew Matharu

 VP - Corporate Affairs

 BlytheRay                            +44 20 7138 3208

 Financial PR

 Tim Blythe

 Megan Ray

 SP Angel Corporate Finance LLP       +44 20 3470 0470

Nominated Adviser and Joint Broker

 Stuart Gledhill

 Caroline Rowe

 Novum Securities Limited             +44 20 7399 9400

Joint Broker

 Jon Beliss

 Colin Rowbury

 Panmure Gordon (UK) Limited          +44 20 7886 2500

Joint Broker

 John Prior

 Hugh Rich

 

Notes:

BGFI Bank Group is a large financial services conglomerate in Central, West
and East Africa, with subsidiaries in ten countries, including Gabon, where
the Group was founded, and Cameroon. The member institutions serve both
individuals and businesses, with emphasis on small-to-medium enterprises
(SMEs). As of December 2020, the Group's assets were in excess of €5
billion, and BGFI Bank Group is described as the largest bank group in Central
Africa (the CEMAC zone).

 

About Tower Resources

Tower Resources plc is an AIM listed energy company building a balanced
portfolio of energy opportunities in Africa across the exploration and
production cycle in oil and gas and beyond. The Company's current focus is on
advancing its operations in Cameroon to deliver cash flow through short-cycle
development and rapid production with long term upside, and de-risking
attractive exploration licenses through acquiring 3D seismic data in the
emerging oil and gas provinces of Namibia and South Africa, where world-class
discoveries have recently been made.

Tower's strategy is centred around stable jurisdictions that the Company knows
well and that offer excellent fiscal terms. Through its Directors, staff and
strategic relationship with EPI Group, Tower has access to decades of
expertise and experience in Cameroon and Namibia, and its joint venture with
New Age builds on years of experience in South Africa.

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