Invictus Energy Limited (ASX:IVZ) is progressively developing its 80% owned and operated Cabora Bassa project in Zimbabwe. The independent oil and gas exploration company has completed its fundraising program. Through a Securities Placement and Purchase Plan (SPP), a total of A$8 million was raised.
Capital Raising Overview
Through a placement announced in December 2021, and with the SPP which closed on January 18, 2022, Invictus has completed its capital raising program, raising A$4 million from each (total of A$8 million).
The PSP has generated overwhelming demand. To accommodate as many eligible shareholders as possible, it was doubled from AU$2 million to AU$4 million. The plan was backed and oversubscribed by Invictus shareholders with a total of 39,999,775 SPP shares issued, raising A$4 million.
All applicants receive a one-for-two free peg option with an exercise price of $0.14 and expiring on January 31, 2025. 19,999,734 options have been issued pursuant to ASX listing rule 7.1 allocation of Invictus.
Mangwana Opportunities Fund Investment Increase
Mangwana Opportunities Fund has agreed to increase its investment in the company through a placement of A$500,000. This is strategic for Invictus as it increases Zimbabwean participation in society. Additionally, this move aligns well with Invictus’ commitment to domestic investors, communities and government stakeholders, among others. Mangwana is an investor-owned closed-end investment company managed by Mangwana Capital.
The shares are to be issued at a price of A$0.10 per share and include a one-for-two free option, exercise price of A$0.14, expiring January 31, 2025. A total of 5,000,000 shares and 2,500,000 options are to be issued to Mangwana.
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Use of funds
Proceeds from the SPP and the placement will fund several initiatives to develop the company’s flagship project, Cabora Bassa, in Zimbabwe.
- Payment of platform mobilization costs.
- Purchase of long items for the planned 2-well drilling program.
- Finalization of data processing for the CB21 seismic survey.
- General working capital.
The Company will launch its major pre-drilling initiatives in the coming weeks. Overall, Invictus is in a strong position ahead of its scheduled drilling campaign in May.