Tower Resources PLC Suspension of Trading on AIM (9365E)
May 12 2017 - 02:00AM
UK Regulatory
TIDMTRP
RNS Number : 9365E
Tower Resources PLC
12 May 2017
12 May 2017
Tower Resources plc
Suspension of Trading on AIM
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
announces that it has applied for suspension of trading in the
Company's ordinary shares on AIM with effect from 7:30 a.m. today
pending clarification of its financial circumstances. A further
update on the Company's farm-out discussions in relation to the
Thali asset and its financial position is set out below.
The Board confirms that it has been in advanced discussions with
a potential partner in relation to the Company's Thali asset.
Unfortunately, despite significant time and effort on the part of
Tower and the other party, a final deadline for signature of a
Heads of Agreement that would have triggered a non-refundable
deposit to Tower, which was set for 11 May 2017, has been
missed.
The Company noted in its announcement of 8 September 2016 that
the proceeds of the placing and open offer undertaken at that time
would provide cash reserves through the first quarter of 2017. As
this above-referenced transaction has not been concluded, the
financial condition and prospects of the Company have deteriorated
leading to significant uncertainty and in order to minimise forward
outgoings current employees have been provided with notice of
termination of their employment.
Consequently the Board is now considering alternatives for the
Company, one of which may include the appointment of
administrators, and a further update will be made as soon as
practicable.
Jeremy Asher, Tower's Chairman and Chief Executive Officer,
commented: "We are enormously disappointed by this development. We
have twice found ourselves in agreement with technically qualified
partners for the Thali license, who have been unable to resolve
their own financing contingencies and left us unable to move
forward. The executive team have handled these negotiations
appropriately, and shareholders and our counterparts at the Societe
Nationale des Hydrocarbures in Cameroon have been patient and
supportive; but the Board does not believe that the Company can
move forward with the work programme at Thali without a
partner."
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Contacts
Tower Resources plc
Jeremy Asher (Chairman and CEO)
Andrew Matharu (VP - Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Broker)
Richard Crichton/Ross Allister
+44 20 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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