Invictus seeks to raise A$10m through a private placement
Invictus Energy, an oil and gas company with operations in Zimbabwe, announced that it will raise A$10 million through a private placement to institutional and sophisticated investors.
The funds will be used to finance the company’s Mukuyu 2 appraisal well programme and Phase 2 exploration programme in Zimbabwe. The private placement has received commitments for 83.33 million new shares at a price of 12 cents each, representing a 20% discount to the last traded price and a 10.7% discount to the 15-day volume-weighted average share price.
The shares will be issued under Invictus’ existing capacity, which means that shareholder approval is not required. Each participant in the placement will be entitled to a one-for-two listed option for every share issued. The options will be exercisable at 20 cents each and will have a three-year term.
The Mukuyu 2 appraisal well programme and Phase 2 exploration programme are part of Invictus’ efforts to explore the potential of the Cabora Bassa Basin in Zimbabwe, which is believed to hold vast amounts of oil and gas reserves. Invictus is working closely with the Zimbabwean government to develop the country’s oil and gas resources and promote economic growth. The private placement will help the company to further its exploration efforts and bring Zimbabwe closer to its goal of becoming an energy-producing nation.
“The placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the board,” said Invictus Managing Director Scott Macmillan.
“Preparations of our Phase 2 exploration and appraisal campaign at the Cabora Bassa project are well advanced, with the 2D seismic campaign anticipated to kick off in May. This seismic campaign will help mature multiple identified leads in the proven fairway into drill-ready prospects, both along trend from Mukuyu and in the highly prospective Basin Margin play.
“We also remain on track to spud the Mukuyu-2 appraisal well in the third quarter of 2023, targeting multiple hydrocarbon-bearing intervals encountered in the Mukuyu-1/ST1 well in the Upper Angwa, Pebbly Arkose and Post Dande formations.”