Invictus Energy has completed a capital raising program to support its flagship Cabora Bassa Project in Zimbabwe.
The company raised a total of A$8 million from its placement and share purchase plan (SPP).
The SPP was oversubscribed, raising A$4 million. The company was originally aiming to raise $2 million but chose to accomodate as many shareholders as possible.
Just under four million shares will be issued under the SPP at a price of 10 cents each.
All SPP applicants will receive a one-for-two free attaching option with an exercise price of 14 cents and expiring in January 2025. The other A$4 million was raised from the placement.
Mangwana Opportunities Fund agreed to increase its investment in Invictus through a separate A$500,000 placement.
Invictus said this is strategic as it increases Zimbabwean ownership in the company. The fund has prescribed asset status and has been granted tax exempt status by the Zimbabwean Ministry of Finance.
Five million shares and 2.5 million options will be issued to Mangwana under the same terms as the SPP. The shares will be escrowed for a period of three months from the date of issue.
The funds from the capital raising will be used to fund initiatives to develop the company’s flagship Cabora Bassa project in Zimbabwe. This includes payment of the rig mobilisation fee, purchase of long lead items, finalisation of the CB21 Seismic Survey data processing, and general working capital.
Managing Director Scott Macmillan said the company is in a solid position.
“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,” he 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.”
Shares are trading A4.55 per cent higher today at A11.5 cents each – Harare