Tower Resources has received formal approval from Namibia's Ministry of Industries, Mines and Energy (MIME) for the farm-out of its PEL96 license offshore Namibia to Prime Global Energies, clearing the final outstanding condition precedent for the transaction.
The AIM-listed company said it will now issue a notice of completion to Prime and circulate a draft deed of assignment, novation and amendment to the ministry and its partners, with completion of the transaction expected shortly.
The farm-out agreement was originally announced on January 10, 2025.
Tower Resources noted it is still awaiting approval for the proposed purchase by its wholly owned subsidiary, Tower Resources (Namibia), of an additional 5% interest in the PEL96 license from local partner ZM Fourteen Investment (Pty), a transaction announced on March 7, 2025.
Due to the delay in obtaining approval, the parties are no longer bound to complete the acquisition but continue to discuss its execution.
"We are very pleased to have received this letter of approval, and would like to thank the relevant personnel at MIME, the Upstream Petroleum Unit and NAMCOR for their diligent review and continued engagement throughout this process.
“We would also like to welcome Prime, who we view as a highly favorable partner for PEL96, with substantial technical and financial resources and a track record of operational success. We look forward to working alongside them and our other stakeholders to progress with the work program offshore Namibia,” said Jeremy Asher, Chairman and CEO of Tower Resources.