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AUSTRALIA oil and gas exploration firm, Invictus Energy, has indicated strong demand for its Special Purchase Plan (SPP) to raise up to $10 million saying commitments for an initial $5 million have already been oversubscribed.
Recently, the firm confirmed the presence of light oil, gas-condensate, and helium gas in commercial concentrations from its Mukuyu-1 mud gas compositional analysis.
Last year, it indicated that the country could be sitting on more than 5,5 billion barrels of oil.
A barrel of oil equivalent (Boe) is a term used to summarise the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil.
In a shareholder update on Monday, the mining house said it has exceeded its initial $5 million target under the Share Purchase Plan announced on 6 April, with the offer receiving overwhelming support from eligible Invictus shareholders.
“The board has agreed to accept oversubscriptions, up to an additional $5 million, to raise a total of up to $10 million.
“Funds raised via the SPP will be used to build on recent exciting breakthroughs from the Mukuyu-1/ST1 exploration campaign and provide funding for the Mukuyu-2 appraisal and Phase 2 exploration programs,” said Invictus.
It added that the SPP will remain open until 5pm (WST) on 25 May 2023, with the company reserving the right to close the offer earlier than stated.
In a recent shareholder update, Invictus noted that the placement was strongly supported by new and existing institutional and sophisticated shareholders, and was strategically cornered by existing investor Mangwana Capital, local Zimbabwean partners, and the board of directors who in aggregate contributed $1,3m, which will be issued subject to shareholder approval at a shareholder meeting.
Under the placement, Invictus will issue 83,333,333 new fully paid ordinary shares at an issue price of $0,12 per new share, representing a 20 percent discount to the last traded price of IVZ shares on April 3, 2023.
In 2020, the Government classified the Muzarabani project as one of the priority development projects, which can provide a significant economic benefit to the economy in pursuit of an upper middle-income economy by 2030.
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derick.khumalo