Tower Resources has entered into a farm-in agreement with Taipan Resources for 15% interest in Block 2B in Kenya. The consideration includes $4.5 million in cash, nine million Tower shares and $1 million contingent payment on spud of a second well in the block.
Tower intends to finance the transaction by raising £19.3 million (US$32 million) by way of issuing new shares to certain existing and new investors at a price of 3.5 pence per share.
In July-2013, Tower Resources acquired a 20% carried interest in the Marovoay Block-2102, Madagascar, after acquiring UK-based Wilton Petroleum for a cash plus share consideration of $4.7 million.
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