AUSTRALIAN energy firm Invictus Energy Limited (Invictus) says it has exceeded its initial AU$5 million (US$3,3 million) target under an AU$10 million (US$6,7 million) capital raising initiative to fund further exploration programmes north-east of Zimbabwe.
In December 2022, Invictus ceased drilling operations at its Muzarabani oil and gas dig site owing to issues with its drilling gear in getting a valid hydrocarbon sample from its first identified drill site, the Mukuyu-1 wellbore.
The failure caused Invictus, in April, to announce a share purchase plan (SPP) of AU$10 million to acquire money for a second drilling at the same site termed Mukuyu 2.
After confirming the presence of light gas condensate, oil, and helium at its Cabora Bassa project north-east of the country early this month, interest in the SPP has soared.
“Invictus Energy Limited is pleased to provide an update on the capital raising activities to assist with the funding of its 80% owned and operated Cabora Bassa Project in Zimbabwe,” Invictus said in a statement yesterday.
“The company has exceeded its initial AU$5 million target under the share purchase plan (SPP), announced on April 6, 2023, with the offer receiving overwhelming support from eligible Invictus shareholders.”
Invictus said the board had agreed to accept oversubscriptions, up to an additional AU$5 million, to raise a total of up to AU$10 million.
“Funds raised via the SPP will be used to build on recent exciting breakthroughs from the Mukuyu-1/ST1 exploration campaign and provide funding for the Mukuyu-2 appraisal and Phase 2 exploration programmes.
“Shareholders who were registered as holders of shares at 5pm (WST) on April 5, 2023 (the record date) and whose registered address is in Australia or New Zealand (eligible shareholders) can subscribe for a maximum of AU$30 000 worth of new shares at an issue price of AU$0,12 per share.”
The SPP will remain open until 5pm on Thursday, with the company reserving the right to close the offer earlier than stated.
According to Invictus, SPP participants will also be entitled to receive attachment options on a one-for-two basis at AU$0,20 (67% premium to the SPP price) with a three-year term.
“Participation in the SPP is optional and eligible shareholders who wish to participate in the SPP are required to complete the application form accompanying the SPP offer document and pay the applicable funds in accordance with the instructions in those documents, prior to the closing date of the SPP,” Invictus said.
Since the announcement of a discovery earlier this month, the share price of Invictus on the Australian Stock Exchange has been fluctuating between AU$12 (US$0,079) and AU$13 (US$0,086) per share. – (Newsday)