Namibia’s Ministry of Industries, Mines and Energy has requested amendments to Tower Resources’ offshore petroleum agreement, delaying the completion of a farm-out transaction that the London-listed company had expected to finalise in October 2026.
The delay has forced Tower to raise £325,000 through the issue of 2.5 billion new shares to cover working capital requirements while it awaits the completion of its farm-out agreements in Namibia and Cameroon.
In an announcement on Monday, 2 November 2026, Tower said the ministry had requested changes to its Petroleum Exploration Licence 96 (PEL 96) agreement, including updated references to petroleum legislation.
The amendments require changes to the deed of assignment, novation and amendment that had already been prepared and agreed between Tower and its partners as part of the farm-out transaction with Prime Global Energies Limited.
Tower said it had received an amended draft from the ministry, but the document still contained one minor error that needed to be corrected before it could be signed by the partners and returned to the ministry for execution.
The company said the substantive amendments appeared to have been agreed, although the ministry’s procedures require several officials to confirm that the correct version of the agreement has been signed.
Tower’s chairman and chief executive, Jeremy Asher, is currently in Windhoek, where he is working with the company’s local representative, joint-venture partners and ministry officials to finalise the documentation.
“I am currently in Windhoek, where our country representative and I have been reviewing the draft texts for the PEL 96 Deed with our partners, including NAMCOR, with whom we also held useful Technical Committee/Operating Committee meetings three weeks ago, and with the MIME staff. I plan to remain here this week to help see that the Minister receives the final, fully reviewed and signed PEL 96 Deed as soon as possible in order to effect completion.”
Tower said the minister had directly requested the finalised documents, but completion would still depend on the remaining administrative procedures.
The company had originally expected the Namibia farm-out to be completed in October. It said the delays had changed its immediate funding requirements, prompting the decision to raise additional capital.
As recently as a month ago, Tower had not anticipated needing another share issue because it expected at least one of its two farm-out transactions to be completed during October.
However, with both transactions still outstanding, its board decided that additional working capital was necessary to cover the extended completion period.
The company will issue 2.5 billion ordinary shares at 0.013 pence each, representing a discount of approximately 7% to its closing bid price on 30 October.
The shares will be admitted to trading on London’s AIM market in two tranches, with the first 1.005 billion shares expected to begin trading around 6 November and the remaining 1.495 billion shares around 16 November.
Following both admissions, Tower’s issued share capital will increase to approximately 47.66 billion ordinary shares.
The company has also agreed to issue its broker, Axis Capital Markets, warrants over 62.5 million shares, exercisable at 0.026 pence per share over three years.
Asher said the fundraising was intended to protect the company against further delays.
“I am happy with the progress we are making towards completion of both farm-outs, and although we had hoped to avoid raising additional capital ahead of completion, we believe this small share issue is a sensible step to ensure the Company is appropriately funded throughout the final stages of the process.”
Tower is also awaiting the completion of its farm-out agreement with Prime in Cameroon, where additional documents are being prepared by the country’s Ministry of Mines, Industry and Technological Development.
These include formal approval of the transaction and confirmation of the assignment agreement following an extension of the initial exploration period for the Thali petroleum project announced on 5 October.
The Namibia and Cameroon farm-out transactions were originally announced on 10 January 2025.
Although Tower believes the remaining issues surrounding the Namibian agreement are largely administrative, it has not provided a revised completion date.
The company must still obtain the final signatures and ministerial execution of the amended PEL 96 deed before the farm-out can be completed.
