Microcap's stock was suspended upon request after agreement on Thali asset missed deadline
Companies: Tower Resources plc
Tower Resources shares were suspended this morning after the company confirmed that its efforts to secure a partner for its Thali asset had stalled, and its financial position had become uncertain.
The Board had been in advanced discussions with a potential partner about its Thali asset, but this morning announced that it had missed the 11 May deadline set to secure the agreement and trigger a non-refundable deposit.
The company had previously noted it would be funded through 1Q17 and given the transaction did not conclude its financial condition has deteriorated. The deterioration had led to "significant" uncertainty as it confirmed the termination of an undisclosed number of jobs:
"...in order to minimise forward outgoings current employees have been provided with notice of termination of their employment."
Chairman and CEO Jeremy Asher said he was enormously disappointed by the 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."
He added that he believed the executive team had handled the negotiations appropriately but admitted that the board did not think it could move forward with the work programme at Thali without a partner.
Tower's shares were suspended as of 8 a.m. The company currently has a market cap of £2.5m.
