Tower Resources has agreed to an unsecured fixed-price convertible bridge loan of £500,000 with Prime Resources to complete farm-out agreements in Cameroon and Namibia.
Prime Resources is a Gibraltar-registered private investment company.
The company announced in January 2025 that it had executed two farm-out agreements associated with Prime Global Energies for minority, non-operated interests in its Thali license, offshore Cameroon, and PEL 96, covering 23,297 km² off the northern Walvis Basin and Dolphin Graben.
Tower Resources (Namibia) Limited, a wholly owned subsidiary of Tower Resources plc, had an 80% operating interest in PEL 96 on Blocks 1910A, 1911 and 1912B.
Prime Global Energies agreed to farm-in to PEL 96 in Namibia for a 25% non-operated interest.
As part of these arrangements, Tower Resources will also receive US$937,500 in cash and US$3,437,500 cash on completion of the two farm-out agreements.
The bridge loan will provide Tower Resources with working capital flexibility in preparation for drilling the NJOM-3 well on the Thali license and Namibia farm-out agreements.
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 CEO Jeremy Asher says the company is confident of receiving the government approvals required to enable completion and hopes to do so within the next few weeks.
However, Asher says, based on this confidence, the company is also keen to ramp up preparations for drilling, including equipment procurement and staffing, to minimise the elapsed time between completion and drilling.
