Invictus Energy Limited has announced that the Company has completed the placement for an equivalent AUD$0.44 million with the Mangwana Opportunities Fund as announced on 30 April 2020 following approval received from the Reserve Bank of Zimbabwe Exchange Control authority.
Mangwana Opportunities Fund is an investor owned, closed end investment company which is managed by Mangwana Capital. It is funded by Zimbabwean institutional investors including pension funds and invests primarily in the fields of Agriculture, Mining and Tourism with an investment horizon of 10 years. The Fund has prescribed asset status and has been granted tax exempt status by the Ministry of Finance.
The share subscription agreement raises the equivalent of AUD$0.44 million through the placement of 12,564,143 shares at a share price of $0.035; a 91% premium to the preceding 5 day VWAP of $0.0183 when the placement was announced on 30 April 2020. The placement is a 20% to premium to the last closing price of $0.029. The shares issued to Mangwana will be held in escrow for 6 months from the date of completion. The agreement makes provision for a further equity investment by Mangwana for the project over the next 12-24 months as well as assisting the Company in achieving its strategic goals in country.
The Company has also announced the appointment of respected Zimbabwean business person Mr. Joe Mutizwa, current chairman of Mangwana Capital, as a director of the Company’s 100% owned local subsidiary Invictus Energy Resources Zimbabwe Pty Ltd. Joe served for ten years as Chief Executive of Delta Corporation, one of Zimbabwe`s largest listed companies before taking early retirement in 2012.
He currently sits on the Presidential Advisory Council (PAC), a body appointed by Zimbabwe’s President, His Excellency CDE E.D Mnangagwa, which is comprised of experts and leaders drawn from diverse sectors to advise and assist the President in formulating key economic policies and strategies in the country. Joe served on the board of the Reserve Bank of Zimbabwe (2015-2019) and currently chairs the board of Star Africa Corporation Zimbabwe, a local sugar refiner; as well as the board of the Infrastructure Development Bank of Zimbabwe (IDBZ).
Joe has a BSc degree (with first class honours) from The London School of Economics; an MBA from the University of Zimbabwe and an MSc from HEC – Paris and Oxford University.
Invictus Managing Director Scott Macmillan commented: “We are pleased to welcome Mangwana to the register as a strategic investor. Our partnership is already beginning to bear fruit and Mangwana has been assisting the Company in country over this period in advancing the key objectives such as the Production sharing Agreement and other regulatory approvals for our world class Cabora Bassa project.”
Joe Mutziwa, Chairman of Mangwana Capital and incoming director of wholly owned subsidiary Invictus Energy Resources Zimbabwe commented:
“We are delighted to become a shareholder of Invictus. Our fund investors comprise a broad range of Zimbabwe’s institutional investors and our Investment in Invictus will ensure that they share in the success of the Company. The Cabora Bassa project/SG4571 in Muzarabani is a potential game changer for the country which can bring about significant economic benefits and energy security to the entire region. We look forward to supporting Invictus to achieve their goals in Zimbabwe and developing our partnership with them.”
SG 4571 covers 250,000 acres located in the most prospective portion of the Cabora Bassa Basin in northern Zimbabwe.
Previously explored by Mobil Oil, the project contains potentially the largest, seismically defined, undrilled structure in onshore Africa. The Mzarabani anticline feature has over 200km2 under closure and 500m vertical relief and favourable depths for conventional oil and gas with TCF+ potential.
Invictus Energy will execute a low-cost, high-impact work program to mature the prospect to drill ready status