OIL and gas exploration company, Invictus Energy has raised $1,5 million from new and existing investors to fund its Cabora Bassa project in Zimbabwe.
BY MISHMA CHAKANYUKA
The funds will be raised by issuing 57 692 310 shares at an issue price of $0,026, which represents a 13,3% discount to the 10-day volume-weighted average price (VWAP).
“Invictus Energy Limited (ASX) is pleased to announce it has received binding commitments for a placement to raise $1,5 million (before costs) by issuing 57 692 310 shares at an issue price of $0,026 which represents a 13,3% discount to the 10 day VWAP,” the company said.
“Shares will be issued to new and existing institutional and sophisticated investors under the company’s existing ASX listing rule 7.1 and 7.1 a placement capacity. A total of 18 592 121 shares will be issued under the company’s listing rule 7.1 allowance and 39 100 189 shares being issued in accordance with Listing Rule 7.1A.”
The funds will be used to finance the development of the group’s Cabora Bassa gas-condensate project in Zimbabwe.
The project encompasses the Muzarabani Prospect, which is potentially the largest, undrilled seismically-defined structure onshore Africa.
Invictus managing director, Scott Macmillan said the placement received surplus demand from what the group had targeted.
“The demand and bids for the placement was well in excess of our target and we thank our existing shareholders and the new incoming shareholders for their strong support. The company looks forward to an exciting growth phase as we focus on discussions with potential farm partners and the future exploration programme,” he said.
The funding will ensure that Invictus is well sponsored through this growth phase as farm-out discussions develop and preparatory works for the on ground exploration phase commence.
Last week, the company requested for a trading break of the company’s securities until the group releases a capital raising update to the market.
In the half year, ended December 31, 2018, Invictus widened its losses to AUD481 313 (US$340 160) from AUD210 782 (US$148 939) in the previous year, as exploration activities added to the company’s costs.
As at December 31, 2018, the carrying value of the capitalised exploration and evaluation properties of the consolidated entity stood at $5,15 million, an increase from the June 2018 figure of $4,58 million.
Invictus’ assets declined to AUD8,39 million (US$5,93 million) from the end of year results ended June 30, 2018 figure of AUD9,61 million (US$6,78 million).
