Invictus Energy’s (ASX:IVZ) share purchase plan to raise AU$10M for Cabora Bassa

By - Manisha


  • Invictus Energy has launched a Share Purchase Plan for a capital raise of up to AU$10 million at AU$0.12 per share.
  • The proceeds will be directed towards Mukuyu-2 appraisal and Cabora Bassa Phase 2 exploration.
  • Attaching options on a one-for-two basis will be allotted to the SPP participants at AU$0.20 with a term of three years.

Invictus Energy Limited (ASX:IVZ) has launched a Share Purchase Plan (SPP) offer of up to AU$10 million. The proceeds from the offer will be utilised for exploration and appraisal activities at its 80%-owned and operated Cabora Bassa Project in Zimbabwe.

The Cabora Bassa basin is one of the last untapped frontier rift basins onshore Africa and has the potential to provide energy security not only for Zimbabwe, but the wider southern African region, upon a successful development.

Key details of the SPP

With its opening on 3 May 2023, the SPP is likely to close on the 25th  of the month.

Under the SPP, up to 83,333,333 new fully paid ordinary shares will be issued by the ASX-listed firm at an issue price of AU$0.12 per share. This represents a 20% discount to the closing price of IVZ shares on 6 April 2023.

Attaching options will be allotted to SPP participants on a one-for-two basis at AU$0.20 with a term of three years.

Invictus is expecting to raise an initial capital of AU$5 million under the SPP. This can be increased up to an additional AU$5 million if the Board accepts oversubscriptions.

Utilising the funds

The proceeds from the SPP will be used to take forward the development and exploration work at the Mukuyu-1/ST1 as well as for the Mukuyu-2 appraisal and Phase 2 exploration campaigns.

The activities include preparation for Mukuyu-2 Well, a 2D Seismic and Processing of Eastern leads on trend with Mukuyu to drill ready targets and Ngamo-Gwayi-Sikumi REDD+ feasibility study and project development.

The company expects the SPP to bring in capital for the ongoing activities. IVZ is also preparing to commence a 2D seismic campaign to mature leads on trend with Mukuyu into drill ready prospects. As per the company, it is on track to spud the highly anticipated Mukuyu-2 appraisal well early in 3Q 2023.

“The data received to date from our basin opening Mukuyu-1 exploration well, which confirmed the presence of a working hydrocarbon system, gives us confidence in our exploration and appraisal strategy,” says the company.

SPP Shortfall Placement

For the SPP, PAC and Canaccord played the part of Joint Lead Managers (JLMs). A management fee equal to 2% of the Offer proceeds will be given to them, as per their respective proportions. However, in case of a shortfall placement, the company will pay a selling fee as well of 4% of any shortfall proceeds offered through a placement.

Stock performance

IVZ shares were trading at AU$0.115 on the ASX midday on 04 May 2023, with a market capitalisation of AU$115.32 million.


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