Australia's Invictus completes $10mn Zimbabwean placement

Australia’s Invictus Energy has completed a fully subscribed $10mn Zimbabwean institutional placement, the company announced on August 1. The capital raised will be used to progress its near-term exploration and corporate strategies.

The placement, which was launched on July 29, is $5mn underwritten by the Mutapa Investment Fund, demonstrating long-term support for the Cabora Bassa project on behalf of the government of Zimbabwe. Several other strategic investors also committed to the placement.

Invictus offered to place $10mn through the issuance of 151.5mn shares at a share price of A$0.10. Under the placement, participants will receive an option to subscribe for one share for every four shares subscribed, exercisable at A$0.30 with a two-year option period.

Funds raised from the placement 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 monetisation opportunities for Mukuyu-2, conducting a 3D seismic survey over the Mukuyu gas field, purchase of long leads for shallow exploration wells targeting the Eastern Margin and Basin Margin plays, and general working capital.

“These funds will be used to progress our dual strategy of early monetisation as well as further development as we look to expand our resource base through further discovery and transition into a development phase,” commented Invictus managing director Scott Macmillan.

The Cabora Bassa project comprises the Mzarabani and Msasa gas and condensate prospects and is operated and 80% owned by Invictus. Last month, Geo Associates, a subsidiary of Invictus Energy, renewed the SG 4571 licence, located in Zimbabwe’s Cabora Bassa basin, for an additional three years.