Invictus raises $25m to fund Mukuyu-1 and Baobab-1 drilling campaign in Zimbabwe

Invictus Energy announced a private placement to raise $25 million at $0.23 per share following the Company’s decision to sole fund the initial drilling campaign in Zimbabwe’s Cabora Bassa Basin.

Following the assessment of a range of options, including farm-in bids from multiple interested parties, Invictus’ Board and Management elected to sole fund the initial stages of the Company’s high-impact drilling campaign, which will target the Mukuyu and Baobab (Basin Margin) prospects.

This decision was made with careful consideration of several factors, including:

• The significant increase in the prospectivity of the Caborra Bassa project following the gazettal of additional exploration tenure and consequential de-risking of the campaign
• Maintaining a material ownership of the expanded acreage encompassing the new Basin Margin play, plus additional prospects and leads, providing shareholders with the largest exposure to drilling success
• Consideration of sole funding via the Company’s own equity capital in comparison to the dilutive impact shareholders would absorb at the project level via any potential farm-in agreements
• The avoidance of time delays and costs associated with executing and undertaking a (or multiple) farm-in partnership(s)

The Company has received firm commitments from sophisticated and institutional investors to raise $25 millon (before costs) by way of private placement (Placement). Under the Placement, Invictus will issue 108,695,652 new fully paid ordinary shares (New Shares) at an issue price of $0.23 per new share, representing a 25.8 per cent discount to the last traded price of IVZ shares on 24 August 2022, being the last trading date before the Placement, and a 15.6 per cent discount to the 15-day VWAP prior to that date.

Placement participants will be entitled to a one-for-one unlisted option for every share issued, exercisable at $0.40 with a five-year term. The Placement was highly oversubscribed, with multiple new and existing institutional investors across North America, the UK, Asia and Australia entering the share register ahead of the Company’s drilling campaign.

Furthermore, the attaching options issued via the transaction are expected to provide meaningful additional capital to the Company’s balance sheet, at a materially higher valuation than the Placement, should the Company be successful in its drilling program.

www.invictusenergy.com