Image source: Company presentation, Mar 2021
- Invictus Energy Limited (ASX:IVZ) has completed a placement to raise $8 million.
- Each share allotted also received an attaching unlisted option on a 1-for-2 basis.
- Funds raised from the placement will be channelised towards fast-tracking developments at the Company’s Cabora Bassa Project in Zimbabwe.
Independent oil and gas exploration company Invictus Energy Limited (ASX:IVZ) has completed a placement to raise $8 million. Managing Director Scott Macmillan believes that the placement is “a strong endorsement” for the Company’s Cabora Bassa Project.
Invictus is the 80 per cent owner and operator of SG 4571 Cabora Bassa asset. It is also the first mover in the under-explored Cabora Bassa Basin, which is amongst the last undrilled oil and gas basins in Africa. Notably, 8.2Tcf + 247 million barrels of conventional gas-condensate1 (~1.6 billion boe) have been independently verified at the Mzarabani Prospect.
SG 4571 – Asset Overview, Source: Company presentation, Mar 2021
While Invictus holds a clear pathway to march ahead towards the development of the SG 4571 asset, the recent placement is likely to further catalyse the company’s endeavours.
The placement to raise $8 million (before costs) has finally been completed. The Company witnessed substantial interest and support from new institutional investors as well as existing shareholders. The Sole Lead Manager was PAC Partners. The placement shares will rank equally with the Invictus’ existing fully paid ordinary shares.
- 72,727,273 shares at $0.11 per share were issued.
- 25,058,198 shares were issued under Invictus’ remaining ASX LR-7.1 capacity.
- 47,669,075 shares were issued under Invictus’ additional ASX LR-7.1A placement capacity.
READ ABOUT THE LATEST DEAL HERE: Can the new deal with Zimbabwe boost Invictus Energy’s Cabora Bassa Project?
Attaching unlisted option
Every share allotted also got an attaching unlisted option-
- On a 1-for-2 basis.
- At an exercise price of $0.17.
- The term is 3-years.
- This will result in 36,363,636 new options being eventually issued.
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Use of funds
Funds raised from the recent placement will be allocated for the forthcoming 2D seismic campaign in the SG 4571 asset to refine the drilling targets. It will also be channelised towards the basis of well design, ordering long lead drilling items for the Mzarabani-1 exploration well and help in the drilling rig tender preparation. The funds will also help the Company in identifying additional prospectivity in the SG 4571 permit.
Moreover, the proceeds of the placement will be applied towards Invictus’ general working capital. This will support the development of the Cabora Bassa Project as the preparations for a high impact basin opening drilling campaign pick up the pace (anticipated in late CY21 / early CY22).
On 30 March 2021, IVZ traded at $0.125 a share with trading volume surpassing 11.8 million. The market capitalisation stood at $64.44.