Invictus to list ZDRs on VFEX after securing US$10m for Mukuyu

HARARE – Invictus Energy has unveiled a US$10 million strategic capital raising, partially underwritten by Zimbabwe’s Mutapa Investment Fund, to advance its Cabora Bassa Project, which contains the Mukuyu gas resource.

The funds will be used for flow testing and early monetisation prospects, as well as preparation for new exploration wells, the acquisition of long leads for shallow exploration wells targeting the Eastern Margin and Basin Margin plays, and general operating capital.

Invictus is offering up to US$10 million in share subscriptions by issuing 151,515,152 shares at a share price of AU$0.10 and an AUD/USD FX rate of US$0.66.

Furthermore, the company intends to facilitate local trading by issuing shares and Zimbabwe Depository Receipts on the Victoria Falls Stock Exchange through a Private Placement to Mangwana Nominees (Private) Limited, which will then list a non-issuer sponsored depository receipt. Mangwana intends to get shares from the offering listed as Depository Receipts on the VFEX to enable local trading of the underlying securities.

The placement will be carried out in two tranches, with Tranche One consisting of the issuance of 113.6 million new shares to raise US$7.5 million and falling within the company’s available placement capacity.

Tranche Two will include an additional US$2.5 million under the same terms as Tranche One, subject to shareholder approval at a future Extraordinary General Meeting of shareholders. Invictus reserves the right to accept oversubscriptions of up to US$5 million at its sole discretion, and any oversubscriptions accepted will be settled in Tranche 2.

Invictus Energy Managing Director Scott Macmillan stated, “We are thrilled with the overwhelming support from Zimbabwean institutional investors, particularly the Mutapa Investment Fund, as our future partners in the project on behalf of the Republic of Zimbabwe.”

Mutapa’s investment is a strong endorsement of the Cabora Bassa Project and recent significant gas-condensate discoveries delivered from Mukuyu-2.
“Further support of institutional investors and the Mangwana Opportunities Fund strengthens our investor base and in-country presence.

He said the Government of Zimbabwe’s commitment, through the Petroleum Production Sharing Agreement (PPSA), provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful phased and ultimate full-field development of Cabora Bassa.

“Our farmout process to secure a strategic partner continues to progress well with active discussions advancing with multiple parties.”

The Mutapa Investment Fund is Zimbabwe’s nominated participant in the future development of the Cabora Bassa Project under the PPSA, and it will be assigned as the beneficiary of the product/profit share and equity holder on behalf of Zimbabwe.

The PPSA is intended to ensure a fair and equitable distribution of project revenue among the Government, Invictus, and its partners, promoting a mutually advantageous collaboration that promotes the project’s long-term success.

Mutapa Investment Fund Chief Executive Officer Dr John Mangudya commented, ““The Government of Zimbabwe’s commitment, through our support for Invictus and the negotiations of the Petroleum Production Sharing Agreement, provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful development of this world-class asset through our future partnership.

He said that Mutapa Investment Fund’s participation in the development of the Cabora Bassa Project has the potential to generate substantial returns while delivering sustainable benefits to the nation for generations to come.

“We are confident that our support for Invictus and the project lays the foundation stone for a vibrant and productive oil and gas sector that will contribute to the creation of jobs, generation of exports and delivery of energy security to Zimbabwe.”

Mangwana Capital Managing Director Ben Mbanga said that, “The Cabora Bassa project and Mukuyu discovery is a potential game changer for the country which can bring about significant economic benefits and energy security to the entire region.”
-finx