HARARE – Invictus Energy has successfully completed a US$10 million strategic placement to fund the development of the Cabora Bassa Project in Zimbabwe, with half the amount underwritten by the Mutapa Investment Fund.
The placement paves the way for a secondary listing on the Victoria Falls Stock Exchange, enhancing liquidity and offering local trading opportunities. This financial injection will accelerate the project’s exploration activities, including flow testing, drilling, and seismic surveys, as the company transitions from exploration to development.
The Placement, announced on July 29, 2024, attracted substantial interest, securing US$5 million underwritten by the Mutapa Investment Fund, Zimbabwe’s Sovereign Wealth Fund. This historic investment allows local investors to hold and trade Invictus securities, marking a significant step for the company and Zimbabwean capital markets.
Scott Macmillan, Managing Director of Invictus Energy, expressed enthusiasm about the successful raise, stating, “This strategic capital raise and the support we have received from institutional investors, particularly the Mutapa Investment Fund, is testament to the quality of the Cabora Bassa Project. These funds will be used to progress our dual strategy of early monetization and further development, expanding our resource base through additional discoveries and transitioning into the development phase.”
The funds raised will be disbursed across two tranches. Tranche One involves the issuance of approximately 98.5 million new shares to raise US$6.5 million, with US$1.5 million placed immediately, followed by US$5 million as part of Mutapa’s underwriting, expected to finalize in the week commencing August 12, 2024. Tranche Two will see an additional 53 million new shares issued to raise US$3.5 million, subject to shareholder approval at an Extraordinary General Meeting in September.
The Placement terms include offering 151,515,152 shares at AU$0.10 per share, at an AUD/USD FX rate of US$0.66. Participants will receive an option to subscribe for one share for every four shares subscribed, exercisable at AU$0.30 within a two-year period.
Funds from the Placement will be allocated to advancing the Cabora Bassa Project, specifically for Mukuyu-2 flow testing, appraisal drilling, reservoir engineering studies, early-stage development concepts, early gas-to-power monetization opportunities, and a 3D seismic survey over the Mukuyu Gas Field. Additionally, the funds will cover the purchase of long leads for shallow exploration wells targeting the Eastern Margin and Basin Margin plays, as well as general working capital.
The dual listing on the VFEX, through the issuance of Zimbabwe Depository Receipts (ZDRs), is set to support local liquidity and trading, with the official listing scheduled for August 2, 2024.
“The placement and dual listing will enable greater and ongoing domestic investment in the company and our project,” Macmillan added, highlighting the broader impact on Zimbabwe’s capital market landscape.
