The private sector lending arm of the World Bank Group will invest $US20 million in Rialto Energy, to support the company’s oil and gas drilling programmes at Cote d’Ivoire.
Perth-based Rialto announced today it had reached in-principle agreement with International Finance Corporation for the $US20 million investment, which will be made through a non-brokered private placement.
Rialto said further details of the placement would be provided once final terms of its pricing had been agreed.
“The proposed issue of warrants to IFC is in recognition of what is expected to be the long-term nature of the investment by IFC, coupled with the strategic and financial relationships IFC brings within Cote d’Ivoire,” the company said in a statement.
Rialto said the funds would be applied towards drilling programs scheduled to kick off in February at its Block CI-202 tenements off the coast of Cote d’Ivoire, which comprises an area of 675 square kilometres and contains four significant, under-appraised oil and gas discoveries.
The company is looking to develop and commercialise one of those discoveries, Gazelle, later this year.
At 10:00AM WST, Rialto’s stock had dropped 7.7 per cent to 30 cents.
