Source: Company presentation, 24 Mar 2021
- Invictus Energy Limited (ASX:IVZ) has received firm commitments to raise $8 million (before costs) via a share placement.
- The funds will enable progress of Cabora Bassa Project- commencement of a 2D seismic acquisition campaign, discovery of additional prospectivity in SG 4571 permit, ordering long lead drilling equipment, and undertaking a rig tender exercise.
- A high-impact basin opening drilling campaign is expected in late CY21/early CY22.
Sub-Saharan Africa-focused Invictus Energy Limited (ASX:IVZ) is the first mover in the under-explored Cabora Bassa Basin, Zimbabwe. Rapidly developing the Cabora Bassa project, the Company is currently preparing to drill the world-class Mzarabani-1 Prospect in Zimbabwe.
On 24 March 2021, the independent oil and gas explorer notified that it had achieved yet another milestone that would propel Project development- the receipt of firm commitments to raise $8 million through a share placement.
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The capital raising is made up of $8 million in funds raised through a private placement to sophisticated and institutional investors. The Company has received strong interest and support from shareholders.
Under the Placement-
- The Company will issue 25,058,198 new fully paid ordinary shares in its LR-7.1 capacity.
- 47,669,075 new shares will be raised in the additional ASX LR-7.1A placement capacity.
- There will be a total of 72,727,273 new shares, and the issue price is $0.11 per share.
- Each investor in the new shares will be allocated an attaching unlisted option. This will be on a 1-for-2 basis and a 3-year term (exercise price of $0.17). It would result in a total of 36,363,636 new options being issued.
PAC Partners acted as the lead manager to the Placement.
Use of funds
The placement is “a strong endorsement of our Cabora Bassa project”, says Managing Director Scott Macmillan. Funds received are likely to serve an array of below-mentioned purposes-
Issue of the Lead Manager options
Invictus will pay a cash fee of 6% on total funds raised. It will also be entitled to receive an attaching unlisted option-
- On a 1-for-8 basis.
- With an exercise price of $0.17.
- A 3-year term.
This will result in an additional 9,090,909 Lead Manager options being issued.
A shareholder meeting will be held to seek the approval of the Lead Manager options. Meanwhile, Invictus continues to prepare for a high-impact basin opening drilling campaign, foreseen in late CY21 or early CY22.
IVZ quoted $0.14 on 24 March 2021. The trading volume was over 11.8 million shares while the market capitalisation stood at $66.83 million.