Tower Resources closes $600K first tranche of financing

Executive Summary

• Tower Resources Ltd. closed the first tranche of its non‑brokered flow‑through private placement, issuing 2.4 million common shares for gross proceeds of $600,000.
• The total offering targets up to $2 million in aggregate gross proceeds by issuing up to eight million shares at $0.25 per share.
• Net proceeds will fund Canadian exploration expenses, principally a 3,000‑metre diamond drilling program on the Rabbit North property.

Key Details

• Offering Structure: Non‑brokered flow‑through private placement; up to 8 million common shares at C$0.25 per share (flow‑through status under the Income Tax Act).
• First Tranche Results: Issued 2.4 million common shares, raising gross proceeds of $600,000.
• Aggregate Target: Up to $2 million in total gross proceeds for the full placement.
• Finder’s Fee: Paid $36,000 cash (6 % of first‑tranche gross proceeds).
• Compensation Warrants: Issued 144,000 warrants exercisable at $0.25 per share, equal to 6 % of the common shares sold; exercise deadline Oct. 14 2026.
• Hold Period: All securities issued (including those issuable upon warrant exercise) subject to a hold period expiring Feb. 15 2026 per TSX‑V rules and Canadian securities law.
• Use of Proceeds: Net proceeds earmarked for qualifying Canadian exploration expenses, primarily a 3,000‑metre diamond drilling program on the Rabbit North gold project in British Columbia.

Notable Quotes

(No direct quotes were provided in the release.)