oil refinery acquisition and funding

Oil Refinery Acquisition & Funding

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CityView signs contract for acquisition of refinery for West Africa.
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Debt Funding from West African and European Banks.
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Of the US$320 million purchase consideration, US$150 million to be raised by placement of CityView shares at Aus 20c per share.
CityView Corporation Limited (“CityView”) is pleased to announce that it has signed a conditional contract for the acquisition of a 50,000 barrels per stream day (bpsd) oil refinery, as foreshadowed in its announcement on August 18, 2008.
The total purchase consideration for the refinery is US$320 million. US$150 million of this will be raised by the placement of CityView shares, the price of which has been agreed with European institutions at Aus 20c per share.
The debt component on the refinery will be secured against the refinery itself with payment of principal and interest being deferred until cash flow is generated from the sale of refinery production.
CityView CEO, Mark Smyth said; “Now that we are in a position to secure the refinery, we can finalise negotiations with third parties to determine the most suitable site to locate it. We have several options that are available to us at the present time.”
“In addition we intend to expand the refinery from its current design capacity of 50,000 bpsd to 100,000 bpsd.”
Level 9, 28 The Esplanade, Perth, Western Australia, 6000
PO Box 5643 St George’s Terrace, Perth, Western Australia, 6831
Telephone: (61-8) 9226 4788 Facsimile: (61-8) 9226 4799
Email: [email protected] Web: www.cityviewcorp.com
ABN: 59 009 235 634 ACN: 009 235 634
ASX / MEDIA RELEASE CityView Corporation
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The transaction is subject to CityView shareholders’ consent. A notice of EGM will be issued in due course, containing further details of the transaction and financing arrangements. Following this share placement it is anticipated that certain members of the new institutional investors will seek Board representation.
The refinery purchase will be finalised in 2008, with shipment and construction in 2009 and operations commencing in the first half of 2010. Expansion to 100,000 bpsd capacity will commence following installation of the first module.
The funding of CityView’s other projects through Pensador Resources Inc and eventual merger will continue as planned, independent of the financing announced here.
Mark Smyth
Chief Executive Officer