Mutapa, NSSA, PSC Invest US$10 Million in Invictus’ Muzarabani Oil Project
The country’s sovereign wealth fund, the Mutapa Investment Fund, the National Social Security Authority (NSSA) and the Public Service Commission (PSC) have invested US$10 million in Invictus Energy, the company leading oil and gas exploration at the Cabora Bassa Project in the Muzarabani-Mbire area.
By Rudairo Mapuranga
According to Invictus Energy Managing Director Scott Macmillan, the US$10 million placement led by Mutapa Investment Fund, NSSA, and PSC is opening the gate for Zimbabweans to invest in Invictus and its Cabora Bassa Project through the Victoria Falls Stock Exchange (VFEX).
He said the participation of the Mutapa Investment Fund, which is wholly owned by the government of Zimbabwe, reaffirms the government’s commitment to the project.
Macmillan thanked Mangwana Capital for coordinating the placement, stating that the placement will be issued as depository receipts on the Victoria Falls Stock Exchange (VFEX).
He also said the investment will go towards the Mukuyu-2 well test and help in the exploration of wells in the untested Exclusive Prospecting Order (EPO) permits, as well as additional appraisal of Mukuyu-2, including 3D seismic and more appraisal wells.
The Invictus Energy Managing Director concluded by saying that the investment from the consortium represents real confidence in the company, its project, and the long-term success and strategic value that the asset has for Invictus.
“We’re really pleased with this significant investment that’s come into the company from a number of strategic investors in Zimbabwe. Not only have we done it at a premium, but we’ve brought in some very high-profile funds, notably the Mutapa Investment Fund, which is the country’s sovereign wealth fund. They have cornerstoned this investment into Invictus, providing real validation and commitment from the government to the success of our project in the Cabora Bassa in Zimbabwe.
“Not only do we have the Mutapa Investment Fund, but we’ve also got the National Social Security Authority, one of the biggest state-owned pension funds in the country, as well as the Public Service Commission, another very large state-owned pension fund. This will cover the majority of Zimbabweans, which is a great result as virtually every citizen in the country now has a piece of Invictus and the project, benefiting the country.
“We’ve been really happy to have Mangwana as a strategic shareholder. Their financial support and the relationships they have with the government and strategic investors have been invaluable in this latest round. With this raise, the primary securities, the ASX-listed ones, will be held by Mangwana, and the underlying securities issued to all those strategic participants will be issued as depository receipts on the VFEX where they’ll trade.
“This investment won’t be seen from a liquidity and trading point of view on the ASX, and there’s a huge demand pool that exists in Zimbabwe that will now be satisfied through the VFEX listing. This has great strategic tie-ups and value beyond just a pure secondary listing. These funds will go towards the Mukuyu-2 well test, and we’ve nearly completed the well design and test work.
“We’re also going to be purchasing long leads for some exploration wells in the untested EPO permits that we have, testing one of those prospects and one of the base margin prospects as well, which have not yet been tested. We’re looking at opening two new plays, which is tremendously exciting, in addition to further appraisal of Mukuyu-2, including 3D seismic and more appraisal wells.
“So, we’ve got a big program lined up. The investment from this consortium represents real confidence in the company, its project, and the long-term success and strategic value that the asset has for Invictus, but also for the country at large,” Macmillan said.