Special Report: Invictus has completed a key placement at a premium to its current share price that highlights the Zimbabwean investor’s belief in the junior gas explorer.

Mangwana Opportunities Fund has picked up 12.5 million shares priced at 3.5c each, giving the company a $440,000 boost to its war chest.

Contrary to most other capital raisings, the placement in Invictus Energy (ASX:IVZ) was carried out at a 91 per cent premium to the five-day value weighted average price when it was announced on April 30 and a 20 per cent premium to the last closing price of 29c.

Shares in Invictus are currently at 3.2c.



As part of the placement, Mangwana Capital chairman Joe Mutizwa has been appointed as a director of the company’s wholly owned Zimbabwean subsidiary.

Proceeds from the placement will be used advance the Cabora Bassa project, including on the ground activity and preparatory works in the project area, Invictus’ Corporate Social Responsibility (CSR) program within the Muzarabani and Mbire Districts and other in-country activities.

“We are pleased to welcome Mangwana to the register as a strategic investor,” managing director Scot Macmillan said.

“Our partnership is already beginning to bear fruit and Mangwana has been assisting the company in country over this period in advancing the key objectives such as the production sharing agreement and other regulatory approvals for our world class Cabora Bassa project.”

Mutizwa said Invictus’ Carbora Bassa project was a potential game changer for Zimbabwe that could bring about significant economic benefits to the entire region.


Potential to meet gas demand

The Cabora Bassa project has the potential to host multi-trillion cubic feet of gas that could alleviate the energy shortages that are hampering industry and economic growth in South Africa.

Invictus has already reached two supply deals covering maximum gas supply of 730 billion cubic feet (Bcf) of gas, which represents just a small slice of the project’s gas potential.

Just before Christmas the company inked a non-binding MoU with Tatanga Energy to jointly investigate the economic and commercial viability of supplying gas to Tatanga’s proposed 500-megawatt (MW) plant that will supply electricity to the national grid and captive clients in Zimbabwe, Zambia and Mozambique.

Minimum gas supply covered by the MoU is about 11Bcf per year and could be increased to about 36.5Bcf per annum.

Invictus also previously secured an MoU to supply Sable Chemical Industries with 70 million cubic feet of gas per day for a 20-year period to replace imported ammonia for the production of fertiliser.

Cabora Bassa has been recognised as a priority development project by the Zimbabwe government.


This story was developed in collaboration with Invictus Energy, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.