AUSTRALIA’S Invictus Energy says it will raise US$3.98 million to support the development of the Cabora Bassa project in Zimbabwe, according to a statement it issued on December 29.
The company has announced a placement of US$2.53 million and a share purchase plan of up to US$1.45 million to raise a total aggregate amount of up to US$3.98 million . Under the placement, Invictus will issue 35 million new fully paid ordinary shares at an issue price of US$0.07/share.
The proceeds from the placement will be used to fund a range of initiatives to further develop the Cabora Bassa project. Invictus will use the proceeds to pay for the rig mobilisation fee, purchase of long-lead items for the planned 2-well drilling programme and finalisation of the data processing of CB21 seismic survey.
In concert with the placement, Invictus will offer all eligible shareholders a share purchase plan to raise up to US$1.45 million, resulting in a maximum of 20 million shares being issued under the plan. All eligible shareholders will have the opportunity to apply for up to US$21 685 worth of new shares.
The Cabora Bassa project comprises the Muzarabani and Msasa gas and condensate prospects, which Invictus describes as “world-class multi-trillion ft3” plays.
The project received environmental approval from Zimbabwean authorities in August last year.