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Nqobile Bhebhe, [email protected]

INVICTUS Energy Limited’s bid to raise a strategic US$10 million in capital received a significant boost after the Mutapa Investment Fund committed to underwriting US$5 million, providing a solid foundation for a transparent and stable operating environment, which is crucial for the successful development of the world-class oil and gas asset.

The funds are earmarked for advancing the Cabora Bassa Project, including flow testing of Mukuyu-2 and the development of early monetisation opportunities.

The commitment from the Mutapa Investment Fund represents a substantial endorsement of the Cabora Bassa Project.

Invictus announced that it has secured a binding share subscription agreement with Mangwana Capital (Private) Limited, which is partially underwritten by the Mutapa Investment Fund.

Mangwana, which manages the strategic investor Mangwana Opportunities, a closed-end investment company owned by investors, has arranged the placement for institutional investors in Zimbabwe with an investment horizon of over 10 years. It has been a consistent supporter of the Cabora Bassa Project.

In a move to increase local investor participation, Invictus is aiming to raise strategic local capital, emphasising the project’s importance to Zimbabwe and the significant local interest, through a Private Placement of US$10 million.

The securities issued are intended to enable a secondary listing on the Victoria Falls Stock Exchange (VFEX) via the issuance of Zimbabwe Depository Receipts (ZDRs), enhancing local liquidity and trading, with a strong demand anticipated.

Mangwana will seek to have shares from the placement listed as Depository Receipts on the VFEX to facilitate local trading of the underlying securities.

Following approval of the listing from VFEX and partial underwriting by Mutapa, Mangwana is completing a book build for the placement to raise up to US$10 million from Zimbabwean institutional investors to close imminently.

“This comprises multiple other long-term Zimbabwean investment funds with an intention to support the project through final stages of exploration, development and into production,” reads part of the update.

The placement will be carried out in a two-tranche private placement with tranche one comprising the issue of 113.6 million new shares to raise US$7.5 million and will fall within the Company’s available placement capacity.

The second tranche will comprise an additional US$2.5 million on the same terms as tranche one, subject to shareholder approval.

Invictus Energy managing director, Mr Scott Macmillan noted that Mutapa’s investment is a strong endorsement of the Cabora Bassa Project and recent significant gas-condensate discoveries delivered from Mukuyu-2.

“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.

“Our partnership with Mangwana continues to assist the Company advance key objectives in the country and provide exposure for local investors to our world-class Cabora Bassa Project.”

Mr Macmillan said Government commitment, through the Petroleum Production Sharing Agreement (PPSA), provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful phased and ultimate full-field development of Cabora Bassa.

The PPSA is designed to ensure fair and equitable sharing of the project’s revenue between the Government, Invictus and its partners, fostering a mutually beneficial partnership that supports the project’s long-term success.

“Our farm-out process to secure a strategic partner continues to progress well with active discussions advancing with multiple parties.”

Mutapa Investment Fund chief executive officer, Dr John Mangudya said Mutapa’s involvement has the potential to generate substantial returns while delivering sustainable benefits to the nation for generations to come

“The Government of Zimbabwe’s commitment, through our support for Invictus and the negotiations of the Petroleum Production Sharing Agreement, provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful development of this world-class asset through our future partnership.”

“The Mutapa Investment Fund’s participation in the development of the Cabora Bassa Project has the potential to generate substantial returns while delivering sustainable benefits to the nation for generations to come.”

He expressed confidence that Mutapa’s support for Invictus and the project lays the foundation stone for a vibrant and productive oil and gas sector that will contribute to the creation of jobs, generation of exports and delivery of energy security to Zimbabwe.

On the other hand, Mangwana Capital managing director, Mr Ben Mbanga said they are pleased to have led the strategic investment process and they look forward to supporting Invictus to achieve their goals in Zimbabwe and furthering partnerships.

“Our fund investors comprise a broad range of Zimbabwe’s institutional investors and our Investment in Invictus will ensure that they share in the success of the Company. The Cabora Bassa project and Mukuyu discovery is a potential game changer for the country, which can bring about significant economic benefits and energy security to the entire region,” he said.

“We look forward to supporting Invictus to achieve their goals in Zimbabwe and furthering our partnership with them.”

Recently, Invictus has had its exploration licence extended by three years and the company is now planning to apply for a production licence soon.

The Mining Affairs Board approved the application to extend the tenure of the SG 4571 licence. The exploration licence runs until June 2027.

In December last year, the firm announced the discovery of one condensate gas at its Mukuyu-2 exploration site in Mbire, Mashonaland Central province, north of Zimbabwe.

It described the gas find, touted to be the largest onshore Africa, as a potential game changer for Zimbabwe’s economic growth and the country’s energy security, among other benefits.