- Invictus Energy (IVZ) has announced a $5.5 million capital raising to fund initiatives to develop the company’s flagship Cabora Bassa gas project in northern Zimbabwe
- Under a placement, the company will raise $3.5 million through the issue of 35 million new shares at 10 cents per share
- Additionally, a share purchase plan (SPP) will be offered to raise up to $2 million with a maximum of 20 million shares being issued at the same issue price as the placement
- The company says the 2-well drilling campaign planned for 1HCY22 will be developed, with proceeds used to fund the Muzarabani-1 well, as well as, finalising data processing for seismic survey, concluding farm-out process and securing long lead items
- Invictus Energy shares are up 4.35 per cent to trade at 12 cents at 11:28 am AEDT
Invictus Energy (IVZ) has announced a $5.5 million capital raising to fund initiatives to develop the company’s flagship Cabora Bassa gas project in northern Zimbabwe.
Under a placement, the company will raise $3.5 million through the issue of 35 million new shares at 10 cents per share, representing a 13 per cent discount to the last closing price on December 22.
Funds from the placement will be used to fund a range of initiatives to further develop the company’s flagship Cabora Bassa project including, payment of mobilisation fee, purchase of long lead items for the planned 2-well drilling programme and finalisation of the data processing of CB21 seismic surve.
Additionally, a share purchase plan (SPP) will be offered to raise up to $2 million with a maximum of 20 million shares being issued at the same issue price as the placement.
All eligible shareholders will have the opportunity to apply for up to $30,000 worth of new shares, with SPP participants also receiving an attaching option on a 1-for-2 basis at a strike price of 14 cents with a three-year term.
If an oversubscription was to occur, the company may decide to increase SPP acceptances by a further $1 million.
Proceeds from the SPP will be allocated to further purchases of long lead for the planned 2-well drilling campaign and for general working capital.
Invictus Energy Managing Director Scot Macmillian said the funds will assist across many areas.
“We have a busy 1st half of 2022 planned with finalisation of our data processing for our seismic survey, update of our prospect and lead inventory, conclusion of our farm-out process and securing long lead items as we embark on our planned 2-well drilling campaign of our world class asset including the Muzarabani-1 well which will be one
of the largest conventional targets drilled globally in 2022,” he said.
The company says the placement and SPP follows on from recent announcements securing the Exalo #202 Rig and a farm in option agreement with Cluff Energy Africa Limited.
PAC Partners acted as lead manager to the placement and will be paid a management fee of 2 per cent and a selling fee of 4 per cent for the placement funds received.
Invictus Energy shares are up 4.35 per cent to trade at 12 cents at 11:28 am AEDT.