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Invictus Energy placement funds to fast-track Cabora Bassa project

Source: Company presentation, 24 Mar 2021

Summary

  • 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.

MUST READ: Invictus Energy puts up a stellar show in half-year report

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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Placement details

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.

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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.

Way forward

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.

GOOD READ: Invictus in sweet spot to unlock potential at Cabora Bassa in Zimbabwe

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