Mangwana Opportunities Fund has agreed to increase its investment in Invictus Energy by way of a private placement for A$500 000, a development seen as strategic as this increases Zimbabwean ownership in the Australian listed company.
The fund is managed by Mangwana Capital and has Zimbabwe’s institutional investors including State-owned and private pension funds. It invests mainly in agriculture, natural resources, and tourism.
Managing director, Scott Macmillan said, “Mangwana’s increased stake in Invictus adds significant local ownership weight to the company and aligns well with the company’s commitment to in-country investor, community and government stakeholders, among others.”
Invictus Energy has also completed a capital raising programme to support its flagship Cabora Bassa project in Zimbabwe as the company raised a total of A$8 million from its placement and share purchase plan (SPP).
The SPP was oversubscribed, raising A$4 million although the company was originally targeting to raise $2 million after opting to accommodate as many shareholders as possible.
Just under four million shares will be issued under the SPP at a price of A10 cents each.
All SPP applicants will receive a one-for-two free attaching option with an exercise price of 14 cents and expiring in January 2025. The other A$4 million was raised from the placement.
Five million shares and 2,5 million options will be issued to Mangwana under the same terms as the SPP. The shares will be escrowed for a period of three months from the date of issue.
The funds from the capital raising will be used to fund initiatives to develop the company’s flagship Cahora Bassa project in Zimbabwe.
This includes payment of the rig mobilisation fee, purchase of long lead items, finalisation of the CB21 Seismic Survey data processing, and general working capital.
Managing Director Scott Macmillan said the company is in a solid position.
“Invictus is in a strong position ahead of its planned May drilling campaign thanks to an excellent show of support from retail investors and recent SPP participants, which allowed the company to double its targeted raise ahead of launching key pre-drilling initiatives in coming weeks,” he said.
The SPP and placement funding will help with drilling costs of Muzarabani-1. Besides, Invictus has identified significant potential for the Cahora Bassa Project and drilling of the world-class Muzarabani prospect is anticipated to commence in May.