AUSTRALIAN energy firm Invictus Energy Limited (Invictus) has announced a share purchase plan (SPP) to raise AU$10 million (US$6,68 million) for its Mukuyu-2 appraisal and Cabora Bassa Phase 2 exploration.
In December 2022, the firm, which seeks to make Zimbabwe’s first oil find, suspended drilling operations at its Muzarabani potential oil and gas dig site owing to challenges with its drilling tools in securing a viable hydrocarbon sample from its first identified drill site, the Mukuyu-1 wellbore.
The failure led Invictus to make a private placement of AU$10 million to raise money for a second drilling at the Mukuyu-2 site.
“Invictus Energy Limited is pleased to announce that as confirmed in the company’s announcement on 6 April 2023, a Share Purchase Plan offer of up to AU$10 million to fund exploration and appraisal activities at the company’s 80% owned and operated Cabora Bassa Project in Zimbabwe,” the company said in a statement yesterday.
“Under the SPP, Invictus will issue up to 83 333 333 new fully paid ordinary shares at an issue price of AU$0,12 per share, representing a: 20% discount to the closing price of IVZ shares, being the last trading date before the placement announcement on 6 April 2023. SPP participants will also be entitled to receive attaching options on a one-for-two basis at A$0,20 (67% premium to the SPP price) with a three-year term.”
Invictus said the attaching options would be issued under the SPP prospectus and that the company would seek to have the options quoted on the Australia Stock Exchange.
All new shares issued under the SPP will rank equally with existing shares.
“Under the SPP, the company is targeting to raise up to an initial AU$5 million with the Invictus board having the discretion to accept oversubscriptions of up to an additional AU$5 million. The SPP Prospectus will be available on ASX and the company’s website this afternoon,” Invictus said.
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The SPP’s proceeds will be utilised to finance the Mukuyu-2 appraisal and Phase 2 exploration projects, building on the promising discoveries made during the recent Mukuyu-1/ST1 exploration campaign.
Invictus managing director Scott Macmillan said this was an exciting opportunity for investors.
“I am pleased we are able to offer existing investors the opportunity to participate in the share purchase plan under the same terms as the recently completed private placement with sophisticated and institutional investors,” he said.
“It provides existing shareholders the opportunity to participate at a very attractive price, with potential near and medium-term upside as we advance preparations for our Mukuyu-2 appraisal and Cabora Bassa Phase 2 exploration campaigns.”
He said the SPP was anticipated to provide additional funding for these activities as the firm prepared to kick off a fresh 2D seismic campaign this month to mature leads on trend with Mukuyu into drill ready prospects.
“We also remain on track to spud the highly anticipated Mukuyu-2 appraisal well early in the third quarter of 2023,” Macmillan said.
According to Invictus, the data received to date from its basin opening Mukuyu-1 exploration well, which confirmed the presence of a working hydrocarbon system, is what is giving the company confidence in its exploration and appraisal strategy.