Invictus Energy completes placement with strategic investor

15 Jul, 2020 - 00:07 0 Views
Invictus Energy completes  placement with strategic investor

The Chronicle

Oliver Kazunga, Senior Business Reporter
AUSTRALIA Stock Exchange (ASX) listed junior oil and gas exploration company advancing the Muzarabani project in Zimbabwe, Invictus Energy, has completed the placement for an equivalent AUD$0,44 million with Mangwana Opportunities Fund, a local private equity fund.

In May, the listed firm announced the signing of an equity subscription agreement with Mangwana Opportunities Fund, which holds prescribed asset and tax exempt status from the Ministry of Finance and Economic Development.

Mangwana Opportunities Fund is managed by Mangwana Capital, which is funded by Zimbabwean institutional investors including pension funds, with investments majoring in agriculture, mining and tourism fields.

In a statement on Monday, Invictus Energy Limited said:

“The company is pleased to announce that it has completed the placement for an equivalent AUD$0,44 million with the Mangwana Opportunities Fund as announced on 30 April 2020 following approval received from the Reserve Bank of Zimbabwe Exchange Control authority.”

It said the fund has prescribed asset status and has been granted tax exempt status by the Ministry of Finance and Economic Development.

“The share subscription agreement raises the equivalent of AUD$0,44 million through the placement of 12 564 143 shares at a share price of $0,035; a 91 percent premium to the preceding five-day VWAP of $0,0183 when the placement was announced on 30 April 2020. The placement is a 20 percent to premium to the last closing price of $0,029.”

The shares issued to Mangwana will be held in escrow for six months from the date of completion.

The agreement makes provision for a further equity investment by Mangwana for the project over the next 12-24 months as well as assisting the company in achieving its strategic goals in country.

The fund is an investor owned, closed end investment company and has a decade long investment horizon.

Funds raised from the placement will be used to advance the Muzarabani Project including preparatory works along with on the ground activity in the project area.

This also enhances Invictus Energy’s corporate social responsibility programme within the Muzarabani and Mbire Districts of Mashonaland Central where the project is based and others in country activities.

Furthermore, considering the global market and oil industry environment, securing this funding ensures that the project spending is unaffected and the company’s exploration programme remains on track.

Invictus’ Cahora Bassa Project encompasses the Muzarabani Prospect, a multi-TCF and liquids rich conventional gas-condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa. — @okazunga

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