Upstream oil and gas company Invictus Energy Ltd (ASX:IVZ) has recorded a share price rise of more than 10% on news that a Zimbabwean investment fund was willing to pump US$5 million worth of funding into the company to progress the Cabora Bassa Project.
Invictus has entered into binding share subscription offer with Mangwana Capital (Private) Limited, with this being partially underwritten by the Mutapa Investment Fund of Zimbabwe – for a total of US$5M – as it also seeks local investment through a Private Placement of US$10 million.
Boosting the local focus of this capital raise, Invictus is reserving the right to accept oversubscriptions of up to US$5M from Zimbabwean investors, with 151,515,152 shares offered at a share price of AU$0.10 at an AUD/USD FX rate of US$0.66.
The company also intends to list on the Victoria Falls Stock Exchange (VFEX) through issuance of Zimbabwe Depository Receipts (ZDRs) to support local liquidity and trading with substantial demand expected, and the securities issued through the capital raising are set to support this.
Mutapa Investment Fund’s involvement in the project will extend to implementation of a Petroleum Production Sharing Agreement, on behalf of the Republic of Zimbabwe.
Money from the capital raise will be dedicated to flow testing for the Mukuyu-2 target, advancing early monetisation opportunities and purchase of long leads for new exploration wells.
Managing Director Scott Macmillan said the capital investment indicated strong support for the project within Zimbabwe.
“We are thrilled with the overwhelming support from Zimbabwean institutional investors,
particularly the Mutapa Investment Fund as our future partners in the project on behalf of the Republic of Zimbabwe,” he said.
“Mutapa’s investment is a strong endorsement of the Cabora Bassa Project and recent
significant gas-condensate discoveries delivered from Mukuyu-2.
“Further support of institutional investors and the Mangwana Opportunities Fund strengthens our investor base and in-country presence.”
At 13:07 AEDT, Invictus shares were trading at 8.6 cents, a rise of 10.26% since the market opened.