Tower has announced that its subsidiary, Tower Resources Cameroon S.A (TRCSA), has been notified by BGFI Bank Group, the largest bank group in Central Africa, that the medium-term loan of approx. US$7 million for which TRCSA and BGFI agreed to a term sheet at the end of June 2022, has been approved by the credit committee of the Cameroon bank. Further approval is still required at the BGFI group level and discussions are now turning to the details of the structure and documentation, as well as a potential modest enlargement of the facility.<\/p>\n
Whilst the Company aims to complete these discussions as quickly as possible, it cannot be certain of when final approval will be received, if it is successful.<\/p>\n
As previously disclosed, the Loan should cover around 40% of the approximate US$18 million cost of the well, with a further amount of 25% already having been paid for by TRCSA. The balance of 35% of the cost of the well is also to be funded by TRCSA. This balance may be funded by further financing at the asset level, or with corporate funds.<\/p>\n
The Company is continuing to discuss additional financing options at the asset level, including with BGFI. The Company’s current plan is to complete the Loan financing documentation, if possible, before seeking to conclude any further bank discussions.<\/p>\n