West Perth-based Rialto Energy Ltd is planning to raise over $7 million via a share placement to fund exploration of its projects in the Carnarvon Basin and attract international growth opportunities.
West Perth-based Rialto Energy Ltd is planning to raise over $7 million via a share placement to fund exploration of its projects in the Carnarvon Basin and attract international growth opportunities.
Rialto said it will place over 22 million ordinary shares at 33 cents each to international and domestic institutions and investors and also to its board over two tranches.
The company said part of the placement will be used to attract growth opportunities, particularly to its international joint venture agreement with Challenger Minerals Inc, a wholly owned subsidiary of global drilling contractor Transocean Inc.
On completion of the raising, Rialto's total issued share capital will be nearly 44.5 million shares.
Below is the full announcement:
Rialto Energy Limited (ASX: RIA) ("Rialto") is pleased to announce a placement of 22,121,212 ordinary fully paid shares at $0.33 per share to raise gross funds of $7,300,000. The Lead Manager to the issue is Patersons Securities Limited.
The shares will be placed with significant international and domestic institutions, sophisticated investors, and also with Rialto's directors and management team. The placement will enable the Company to strengthen and diversify its institutional shareholder base through the introduction of new international funds.
The placement proceeds will be used:
- to attract and negotiate international growth opportunities, particularly in relation to Rialto's International Joint Venture Agreement with Challenger Minerals Inc. ("CMI"). CMI is the wholly owned subsidiary of Transocean Inc., the world's largest offshore drilling contractor;
- to further assess the potential of Rialto's exploration permits WA-399-P and WA-291-P in the Carnarvon Basin, offshore Western Australia; and
- for working capital purposes.
The placement will be made in two tranches. The first tranche, of 3,346,500 shares, is expected to be allotted on 11 July 2008 under the Company's 15% placement capacity. The second tranche, of 18,774,712 shares, which will include the 2 million shares to be placed with Rialto's directors and management team, is subject to shareholder approval.
A General Meeting of shareholders is expected to be conducted in late August 2008.
Assuming shareholder approval, allotment of the second tranche of shares will occur shortly after this date.
Upon quotation of the second tranche of shares, Rialto's total issued share capital is expected to be 44,431,212 shares.
