The Board of Rialto Energy has now executed formal documents in relation to the acquisition of CLNR Holdings Limited. CLNR Holdings (CLNR) has a right to acquire 75% of the share capital of C&L Natural, the holder of an 85% participating interest in the offshore oil and gas concession, Block CI-202.
The balance of 15% of the PSC is held by the Cote d'Ivoire State petroleum company, Societe Nationale d'Operations Petrolieres de la Cote d'Ivoire (Petroci).
The transaction is subject to various conditions precedent including the approval of the shareholders of Rialto; raising sufficient capital to fund the acquisition; CLNR completing its acquisition of a 75% interest in C & L Natural and work program confirmation. The transaction also requires the consent of the Government of Cote d'Ivoire as to the change of control of C&L Natural, and this process is underway.
It is anticipated that a Notice of Meeting will be dispatched to shareholders shortly.
A capital raising will be undertaken by Rialto to fund the acquisition and to provide ongoing working capital to fund C & L Natural's work program and Rialto's existing work program's. Attached is a presentation to be provided to potential investors at a series of investor briefings starting in the week commencing 3rd of May in Europe.
Brett Woods commented that 'The conclusion of the Formal Documents marks a significant milestone for Rialto in its further expansion into West Africa. Alongside our rights for the Accra Block in Ghana, CI-202 is an acquisition that delivers to Rialto shareholders a significant stake in two world-class opportunities. These are truly transformational assets.'