Invictus Energy Limited (ASX: IVZ) has completed a capital raising initiative for further development of its 80% owned and operated Cabora Bassa Gas-Condensate Project in Zimbabwe.
A total of $8 million was raised comprising of $4 million via a placement and $4 million via a SPP. Due to overwhelming demand and to accommodate as many eligible shareholders as possible, the SPP was doubled from $2m to $4m.
Mangwana Opportunities Fund has agreed to increase its investment in Invictus by way of a placement for $500,000. Mangwana is an investor owned, closed end investment company which is managed by Mangwana Capital.
Invictus Managing Director, Scott Macmillan, said the placement to Mangwana is strategic for Invictus as it increases Zimbabwean ownership in the company. The fund comprises a broad range of Zimbabwe’s institutional investors including state-owned and major pension funds and invests primarily in the fields of agriculture, natural resources and tourism.
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,” Mr 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.
“Freshly processed data from the CB21 Seismic Survey evidenced a target-rich hydrocarbon environment and identified multiple anomalies of interest.
“The Company will now turn its attention to preparation for drilling at our Cabora Bassa Project, namely the world class Muzarabani prospect, with further updates regarding pre-drilling activity to be released in the near future.”
Proceeds from the SPP and placement will be used to fund a range of initiatives to develop Invictus’s flagship Cabora Bassa Project.
These include:
The Cabora Bassa Project encompasses the Muzarabani Prospect, an 8.2 TCF and liquids rich conventional gas-condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa.
The prospect is defined by a robust dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.