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(Sharecast News) - Tower Resources announced on Monday that it has expanded its bridge loan facility by £250,000 to £1m to maintain working capital flexibility ahead of drilling the NJOM-3 well on the Thali license in Cameroon.
The AIM-traded firm said the unsecured fixed-price convertible loan, provided by Prime Resources, carried a 5% cash implementation fee and 15% annual interest, with a term of up to 12 months from its original March drawdown.
It said it was convertible into ordinary shares at 0.05588p per share if not repaid early, representing a 100% premium to the average share price before the original agreement.
No warrants or additional equity-linked instruments were attached to the facility.
"The purpose of the bridge loan has been to provide the company with working capital flexibility in preparation for the drilling of the NJOM-3 well on the Thali license in Cameroon," said chairman and chief executive Jeremy Asher.
"We are still anticipating spudding the NJOM-3 well in the fourth quarter of 2025, although this is now quite a tight schedule."
He added that the company expected imminent formal documentation approving the extension of the Thali license exploration period and its farm-out to Prime Global Energies, but emphasised the need to "keep the current work streams on track" to minimise any delay to the drilling timetable.
At 1430 BST, shares in Tower Resources were up 3.06% at 0.04p.
Reporting by Josh White for Sharecast.com.
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