Upstream oil and gas company Invictus Energy will raise A$10-million in a private placement to sophisticated and institutional investors to fund preparations for the Mukuyu 2 appraisal well programme, and Phase 2 exploration programme, in Zimbabwe.
The company has received firm commitments for the placement of 83.33-million new shares, at a price of 12c each, representing a 20% discount to its last traded price, and a 10.7% discount to its 15-day volume weighted average share price.
The shares will be placed under Invictus’ existing capacity and will not require shareholder approval.
Placement participants will be entitled to a one-for-two listed option for every share issued, exercisable at 20c each with a three-year term.
“The placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the board,” said Invictus MD Scott Macmillan.
“Preparations of our Phase 2 exploration and appraisal campaign at the Cabora Bassa project are well advanced, with the 2D seismic campaign anticipated to kick off in May. This seismic campaign will help mature multiple identified leads in the proven fairway into drill-ready prospects, both along trend from Mukuyu and in the highly prospective Basin Margin play.
“We also remain on track to spud the Mukuyu-2 appraisal well in the third quarter of 2023, targeting multiple hydrocarbon-bearing intervals encountered in the Mukuyu-1/ST1 well in the Upper Angwa, Pebbly Arkose and Post Dande formations.” – (Mining Weekly)