Tower Resources arranges $2-million private placement

Executive Summary

• Tower Resources Ltd. announced a non‑brokered flow‑through private placement to raise up to C$2 million by issuing up to 8 million common shares at C$0.25 per share.
• Net proceeds will fund Canadian exploration expenses, primarily a 3,000‑metre diamond drilling program on the Rabbit North property targeting the Blue Sky and Thunder North zones.
• The offering includes a 6 % finder's fee payable in cash and compensation warrants (6 % of shares sold) exercisable at C$0.25 for 12 months; all securities are subject to a four‑month‑plus hold period.

Key Details

• Placement Size: Up to C$2 million gross proceeds.
• Shares Offered: Up to 8,000,000 common shares at C$0.25 per share (flow‑through shares).
• Use of Proceeds: Canadian exploration expenses – chiefly a 3,000‑metre diamond drilling program on Rabbit North.
• Drilling Focus: Confirm continuity of high‑grade Blue Sky and Thunder North zones; initial 50 m hole spacing to estimate upper‑zone gold resources.
• Gold‑Grain Survey: Recent 70‑sample till survey completed; results expected within two weeks, coinciding with drill start‑up.
• Finder’s Fee: Cash payment equal to 6 % of gross proceeds raised.
• Compensation Warrants: Issued to qualified non‑related parties, exercisable at C$0.25 for a period of 12 months; amount equals 6 % of total common shares sold.
• Hold Period: All securities (including warrants) subject to a hold period expiring four months and one day after issuance, per TSX Venture Exchange rules.

Notable Quotes

(No direct quotes were provided in the release.)