Tower increases Namibia block stake

Doubling up: Tower will increase its interest in Block 0010 from 15% to 30% following an agreement with Arcadia

AP/SCANPIX

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Josh Lewis

 30 July 2012 07:21 GMT

Tower Resources has entered an agreement with fellow London-listed company Arcadia Petroleum to double its stake in Block 0010, off Namibia.

Tower will see its interest in the licence increase from 15% to 30% by reimbursing 30% of Arcadia’s past costs, which amounts to about $5.3 million and will assume 30% of all future costs.

In order to fund its share of past and future costs, Tower also announced on Monday that it had raised £5.9 million ($8.8 million) through a conditional placing of nearly 196.7 million new shares at a price of £0.03 per share, which represented a 2.5% premium to the midmarket closing price on Friday.

Tower noted that £3.15million was being…

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