Invictus Energy Secures $10 Million to Boost Cabora Bassa Project
IVZ (IVZ) Share Update July 2024 Wednesday 31st
Invictus Energy Completes $10 Million Institutional Placement
Invictus Energy Ltd (ASX: IVZ), an independent oil and gas exploration company, has successfully completed a $10 million institutional placement to further its exploration and development activities in the Cabora Bassa Basin in Zimbabwe.
Instant Summary:
- Invictus completes fully subscribed $10 million strategic Zimbabwean Institutional Placement.
- Mutapa Investment Fund of Zimbabwe underwrites $5 million.
- Funds raised to be issued across two tranches.
- Secondary listing on the Victoria Falls Stock Exchange scheduled for 2 August 2024.
Placement Details
On 29 July 2024, Invictus Energy launched a $10 million institutional placement managed by Mangwana Capital. This placement is fully subscribed, with $5 million underwritten by the Mutapa Investment Fund, Zimbabwe's Sovereign Wealth Fund.
The placement will be carried out in two tranches. Tranche One will involve issuing approximately 98.5 million new shares to raise $6.5 million, with $1.5 million placed immediately and a further $5 million to be finalized by mid-August 2024. Tranche Two will involve issuing approximately 53 million new shares to raise $3.5 million, subject to shareholder approval at an Extraordinary General Meeting in September.
Use of Funds
The funds raised will be used to advance the Cabora Bassa Project, including:
- Mukuyu-2 flow testing, appraisal drilling, and well test design studies.
- Reservoir engineering studies and early-stage development concepts.
- Progressing early gas-to-power monetization opportunities for Mukuyu-2.
- Conducting a 3D seismic survey over Mukuyu Gas Field.
- Purchasing long leads for shallow exploration wells targeting the Eastern Margin and Basin Margin plays.
- General working capital.
Strategic Importance
This strategic investment is historic for both Invictus and Zimbabwean investors, who will now have the ability to hold and trade securities in the company through a dual listing on the Victoria Falls Stock Exchange (VFEX). The official listing is scheduled for 2 August 2024.
The investment also firms up a pathway to finalize the Petroleum Production Sharing Agreement (PPSA), designed to ensure fair and equitable sharing of the project's revenue between the government, Invictus, and its partners.
The successful completion of the $10 million placement is a significant milestone for Invictus Energy. It demonstrates strong investor confidence in the Cabora Bassa Project and provides the necessary funds to advance exploration and development activities. The dual listing on VFEX will also enhance liquidity and trading opportunities for local investors.
Investor Reaction:
Analysts are likely to view this development positively, given the strategic importance of the Cabora Bassa Project and the support from institutional investors, particularly the Mutapa Investment Fund. The dual listing on VFEX is expected to attract more domestic investment, further boosting investor confidence.
Conclusion:
Investors should keep an eye on the progress of the Cabora Bassa Project and the upcoming dual listing on VFEX. The successful completion of the placement and the strategic support from the Mutapa Investment Fund highlight the potential for significant growth and development in this high-impact energy resource.