Tower Announces Closing of Flow-Through Tranche of Non-Brokered Private Placement
Tower raised capital to fund Rabbit North drilling, extending its financial runway despite ongoing cash burn concerns.
Tower Resources Ltd. (TWR) has closed the flow-through tranche of its previously announced non-brokered private placement. The company issued 6,000,001 flow-through common shares at $0.18 per share, raising aggregate gross proceeds of $1,080,000.18. These funds are designated for eligible Canadian Exploration Expenses to advance exploration at the Rabbit North gold project, including drilling and geophysical surveys.
Finder's fees for the transaction include a 6% cash commission totaling $64,800 and 360,000 warrants exercisable at $0.16 per share until July 3, 2027. The securities are subject to a statutory hold period expiring November 4, 2026. The next tranche closing is anticipated on or around July 17, 2026, subject to TSXV approval.
Tower Resources Ltd. (TWR) has closed a tranche of its capital raise, a routine follow-up to the June 16, 2026 announcement of a $1.72 million offering. The shares were priced at $0.18, a figure below the recent trading range that reflects a standard discount to facilitate the deal. The transaction raises $1.08 million, providing approximately three to four months of runway based on the company’s first quarter of fiscal year 2026 cash burn of roughly $826,000.
The issuance of warrants at $0.16 introduces additional potential dilution, though the $0.02 discount to the share price is standard for flow-through financings. While the news confirms the execution of the capital raise, it does not alter the fundamental exploration risk or the going concern status explicitly noted in the company’s Management’s Discussion and Analysis. Market reaction is expected to be muted as the financing was anticipated, with investor focus remaining on the upcoming July 17 tranche and subsequent drill results.
Tower Resources Ltd. (TWR) is a pre-revenue junior explorer focused on the Rabbit North orogenic gold project in the Kamloops porphyry Cu-Au district of British Columbia. The flagship project includes the Blue Sky and Thunder North gold zones, which were discovered through till gold-grain surveys and subsequent drilling. The company employs a unique till sampling methodology to identify gold sources beneath glacial cover.
Recent drilling has intersected high-grade gold, including 40.05 g/t Au over 6.3m in Hole 072. Other properties include Nechako Gold and More Creek, but exploration is deferred to conserve capital.