Investors have demonstrated their support for Invictus and its Cabora Bassa gas project in Zimbabwe through an $8m private placement to fund exploration.

Proceeds from the placement of 72.7 million shares priced at 11 cents each to sophisticated and institutional investors will be applied to the upcoming 2D seismic campaign in SG 4571 and long-lead items for the drilling of the Mzarabani-1 exploration well.

The company is planning to acquire at least 400km of 2D seismic, which exceeds its work program obligations.

Funds will also be used for the basis of well design and drill rig tender preparation.

Invictus Energy (ASX:IVZ) managing director Scott Macmillan says the excellent support from new and existing shareholders is a “strong endorsement” of Cabora Bassa and the exciting Mzarabani-1 prospect.

“The placement funds will allow us to commence our 2D seismic acquisition campaign to refine the drilling targets in the stacked Mzarabani Prospect and identify additional prospectivity in the SG 4571 permit,” he noted.

“In addition, the placement will provide ongoing working capital to support the development of the project as it continues to prepare for a high impact basin opening drilling campaign, anticipated in late CY21/early CY22.”

Placement details

Under the private placement, the company will issue new institutional investors and existing shareholders with 72,727,273 new shares priced at 11c each.

This represents a 10 per cent discount to the 15-day volume weighted average price of IVZ shares prior to 19 March 2021.

In addition, investors will receive one unlisted option exercisable at 17c with a three-year term for every two shares subscribed.

Cabora Bassa gas project

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.

It hosts the Mzarabani prospect that was defined from a robust dataset acquired by Mobil in the early 1990s.

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

Highlighting the interest in the project, the company received a non-binding farm-in offer during the December 2020 quarter though it noted that this is subject to further technical, legal and commercial due diligence by both parties, approvals and agreements by requisite government authorities and execution of binding agreements.


This article was developed in collaboration with Invictus Energy, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.