Invictus Energy, currently developing an oil and gas project in northern Zimbabwe, has announced that the second tranche of its US$10 million capital raise has been oversubscribed by institutional investors.
The company accepted over US$2 million in additional subscriptions, reflecting strong confidence in its operations.
The funding will support exploration and development at the Cabora Bassa Project, where Invictus previously announced the discovery of condensate deposits at its Mukuyu fields in Mbire, Mashonaland Central, in December 2023. Although no timeline for production has been set, the funds will facilitate wellsite development and further exploration in the expansive area.
“Invictus Energy Limited is pleased to announce that following shareholder approval at the Extraordinary General Meeting on October 21, 2024, the second tranche of the US$10 million institutional placement managed by Mangwana Capital has been completed,” the company said.
Mangwana Capital, an investment advisory firm and Invictus shareholder, managed the placement. Invictus noted the additional US$2 million accepted in oversubscriptions under the same terms, highlighting the strong demand among investors.
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Tranche one, worth US$5 million, was partially underwritten by the Mutapa Investment Fund of Zimbabwe and completed in August 2024. This marked a milestone for both Invictus and Zimbabwean investors, who can now trade the company’s securities through its secondary listing on the Victoria Falls Stock Exchange.
Managing Director Scott MacMillan emphasized the investor confidence in the project. “The completion of this strategic capital raise is a testament to the belief in our Cabora Bassa Project and its potential to transform Zimbabwe’s energy landscape. With the secured funding, we are well-positioned to advance our exploration and development efforts,” he said.
The Mukuyu discovery, which ranks as the second-largest oil and gas find in sub-Saharan Africa in 2023, is estimated to contain 1.3 trillion cubic feet (Tcf) of gas. The deposits, located in the Lower and Upper Angwa formations, were identified during Invictus Energy’s drilling campaign in late 2023.
The project’s significance extends beyond exploration. Invictus has signed agreements for near-term gas supply and is planning a gas-to-energy facility. These developments could contribute to Zimbabwe’s energy independence, job creation, and economic growth, while addressing the country’s chronic energy shortages.
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