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ZIMBABWE: Funding Completed for Rig Mobilisation in Cabora Bassa Basin

HIGHLIGHTS
• Placement and SPP funding raises $8m
• $4m SPP oversubscribed and has closed
• 2-well drilling program planned for May 2022, with proceeds to be used to fund the mobilization of the Exalo #202 drilling rig and long lead items
• Muzarabani-1 well targeting prospective resources of 8.2 Tcf+ 247m barrels conventional gas condensate

Invictus Energy  has confirmed that further to its announcement on 29 December 2021, and together with the Securities Purchase Plan (SPP) closing on 18 January 2022, it has completed its capital raising programme. A total of $8m was raised comprising of $4m via a placement and $4m via a SPP.

Due to overwhelming demand and to accommodate as many eligible shareholders as possible, the SPP was doubled from $2m to $4m. The SPP was supported and oversubscribed by Invictus shareholders raising $4m.

Use of funds
Proceeds from the SPP and placement will be used to fund a range of initiatives to develop Invictus’s flagship Cabora Bassa Project.
These include:
• Payment of the rig mobilisation fee
• Purchase of long lead items for the planned 2-well drilling programme
• Finalisation of CB21 Seismic Survey data processing
• General working capital

Further, Mangwana Opportunities Fund has agreed to increase its investment in Invictus by way of a placement for $500,000. Mangwana is an
investor owned, closed end investment company which is managed by Mangwana Capital. The placement to Mangwana is strategic for Invictus as it increases Zimbabwean ownership in the Company. The fund comprises a broad range of Zimbabwe’s institutional investors including state-owned and major pension funds and invests primarily in the fields of agriculture, natural resources and tourism. The Fund has prescribed asset status and has been granted tax exempt status by the Zimbabwean Ministry of Finance.The Mangwana shares issued under the placement will be escrowed for a
period of three months from date of issue.

Invictus Managing Director Scott Macmillan said:
“Invictus is in a strong position ahead of its planned May drilling campaign thanks to an excellent show of support from retail investors and recent SPP participants, which allowed the Company to double its targeted raise ahead of launching key pre-drilling initiatives in coming weeks. Mangwana’s increased stake in Invictus adds significant local ownership weight to the Company and aligns well with the Company’s commitment to in-country investor, community and government stakeholders, among others.

Freshly processed data from the CB21 Seismic Survey evidenced a target-rich hydrocarbon environment and identified multiple anomalies of interest.
“The Company will now turn its attention to preparation for drilling at our Cabora Bassa Project, namely the world-class Muzarabani prospect, with further updates regarding pre-drilling activity to be released in the
near future.”

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