- Tower Resources has reported a loss of $23.3m for the year to 31 December 2016, compared to a loss of $9.8m for the previous year.

Revenue was nil, as was the case for the previous year.

In addition, the Company said it is proposing to place 18,000,000 new Ordinary Shares with certain investors including some of its existing shareholders and Directors to raise gross proceeds of approximately £180,000.

The Company issued the following summary and operational review statement:

"Last year, in our 2015 report, we explained our strategic shift of focus towards lower risk exploration and development within proven basins, best characterised by our 2015 signature of the Thali PSC in the Rio Del Rey basin, offshore Cameroon. We had not and have not abandoned high risk/reward exploration altogether: we still have our licenses in Zambia and South Africa, for example, and we still have new licenses under discussion in Namibia. The Thali PSC also has a high reward upside in the deeper zones, which have not yet been tested by past drilling, as Exxon's Zafira discovery to the South-West of our block has demonstrated. We continue to believe that all of our assets are attractive and valuable. But our strategy is to shift the balance of our investment, and to make the focus of our new investment the lower risk opportunities like Thali, or other appraisal and development opportunities, which still offer good rewards during this phase of the market cycle.

"In practice, this strategy requires finding external finance at the asset level for our existing exploration commitments wherever possible, which is why we took the decision to convert our working interest in the SADR to a royalty interest. Although Thali is not a pure exploration project like Zambia, we have been seeking to farm out Thali to minimise our funding requirements and free up cash. We have been open to different types of structures for investment in Thali going forward, including both working interest and royalty structures. Our financial strategy continues, for the time being, to focus on funding existing commitments at the asset level given the weak level of AIM investor interest in exploration, but this is of course subject to change as the market itself changes.

"As an operator, as we are in Cameroon and Zambia, we believe that the scale of local operations is also important to create savings and synergies across blocks in the same basin. To some extent this can be achieved and reinforced through good relations with other local operators, but controlling multiple blocks oneself is the most obvious way to achieve such synergies (where they can be found) to the benefit of one's host nation, one's partners, and one's investors alike. To this end, we are continuing to discuss a further PSC in Cameroon even while we are looking to finance our existing one - but only, of course, if we can also secure appropriate external financing for such a PSC.

"Once we have secured financing for our existing commitments, we intend to turn our attention to new commitments, and to focus on new opportunities that have clearly defined investment requirements and a low-risk path to cash flow, for which we believe there is still investor appetite on AIM. But we believe that we need to address our existing work commitments first or together with any such new opportunities.

"Keeping overhead costs appropriately low, and managing operating costs well, are always important, but especially so in this phase of the market, when it may take longer than usual to develop assets, with less investment capital available. We have always sought to keep fixed costs down, and total costs flexible, through outsourcing a number of important functions such as our G&G relationship with PDF, and over the past eight months we have reduced our central costs substantially, as promised at the time of the 2016 placing.

"On an operational level, activity has been low in both Zambia and South Africa since our last update, following the conclusion of the last phases of our work programs, but in Cameroon we have been working hard with SNH on different options for completing the current phase of our existing work program, including a well on Thali."

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