Invictus Energy Limited has announced the successful acquisition of A$15 million ($10.29 million) through an Institutional Placement. This substantial funding is directed towards enhancing the company’s operations at its 80% owned and operated Cabora Bassa Project in Zimbabwe.

The Cabora Bassa Project, situated in Northern Zimbabwe, has gained attention following Invictus Energy’s recent discovery of natural gas in the Upper and Lower Angwa formations via the Mukuyu-2 well. The investment will be used for various activities, including a well test on these natural gas discoveries, preparation for a 3D seismic survey over the Mukuyu gas field, and other critical operations.

Under the Placement terms, Invictus will issue about 115.4 million new fully paid ordinary shares at an issue price of A$0.13 per share. This pricing represents a 16% discount to the company’s share price as of December 21, 2023, and a 21% discount to the five-day volume weighted average price prior to that date.

Investors participating in the Placement will receive one free listed IVZOA option for every two shares subscribed and issued, with a total of up to 57.7 million IVZOA options to be issued. Additionally, Invictus plans to launch an Entitlement offer to all shareholders in January 2024, further highlighting the company’s commitment to its investors and its confidence in the project’s future.

The Placement has attracted a wide range of new and existing sophisticated and institutional investors, underlining the market’s confidence in Invictus Energy’s strategic direction and the potential of the Cabora Bassa Project.

Scott Macmillan, Managing Director of Invictus, commented on the funding, stating that it will significantly contribute to the advancement of their recent gas discoveries and the successful completion of the Mukuyu-2 drill campaign. He also mentioned ongoing operations in the Mukuyu field, including a well test and preparations for a 3D seismic survey. The company is also focusing on developing additional drill-ready prospects from its recent CB23 infill seismic survey and planning for the next well location within its extensive 360,000-hectare project area.

This development marks a significant step forward in the exploration and development of natural gas resources in Zimbabwe, positioning Invictus Energy as a key player in the region’s energy sector.