Rialto Energy is seeking to raise up to $21 million to fund exploration and development work at its oil and gas acreage off the coast of Cote d’Ivoire.
Rialto said today it would conduct a $16 million placement to institutional investors, with GMP Securities Europe and Euroz Securities to act as joint bookrunners to the placement.
Rialto also said it would launch a share purchase plan for existing shareholders, to raise an additional $5 million.
The company did not specify the price at which it would issue the new shares.
Rialto said its specific focus for the funds would be development planning for its discovered gas resources in the Gazelle field, and reaching agreement with the Cote d’Ivoire government to restructure existing work commitments.
Rialto’s stock last traded at 3.5 cents, prior to entering a trading halt this morning.
The capital raising plans come a day after chief financial officer Patrick Garo resigned from the company, with immediate effect.
Rialto managing director Rob Sheperd said the remaining management team had “more than enough” expertise to run the company in a cost-effective manner.
