Staff Reporter
Mutapa Investment Fund (MIF) has committed to underwriting a substantial portion of Invictus Energy Ltd's strategic capital raise.
This move marks a significant endorsement of the Cabora Bassa Project and the recent gas-condensate discoveries in the Mukuyu gas field.
Invictus Energy Ltd, an independent oil and gas exploration company, announced in a statement that MIF will underwrite US$5 million of a US$10 million capital raise, facilitating the company's secondary listing on the Victoria Falls Stock Exchange (VFEX).
This initiative aims to bolster local liquidity and trading through the issuance of Zimbabwe Depository Receipts (ZDRs).
Invictus Energy Managing Director Scott Macmillan, expressed his gratitude for the local support, stating, “We are thrilled with the overwhelming support from Zimbabwean institutional investors, particularly the Mutapa Investment Fund as our future partners in the project on behalf of the Republic of Zimbabwe. Mutapa’s investment is a strong endorsement of the Cabora Bassa Project and recent significant gas-condensate discoveries delivered from Mukuyu-2.”
Macmillan added that the funds raised will be directed towards Mukuyu-2 flow testing, advancing early monetization opportunities, and the purchase of long leads for new exploration wells.
This capital injection is pivotal for Invictus as it transitions from exploration to development and production in the resource-rich Cabora Bassa Basin.
Chief Executive Officer of MIF, Dr John Mangudya, emphasized Government's commitment to the project.
“The Government of Zimbabwe's commitment, through our support for Invictus and the negotiations of the Petroleum Production Sharing Agreement (PPSA), provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful development of this world-class asset through our future partnership. The Mutapa Investment Fund’s participation in the development of the Cabora Bassa Project has the potential to generate substantial returns while delivering sustainable benefits to the nation for generations to come,” said Dr Mangudya.
The PPSA is designed to ensure a fair and equitable sharing of the project's revenue between the Government, Invictus, and its partners. This agreement is set to provide a stable and transparent legal and fiscal framework, fostering a mutually beneficial partnership that supports the project's long-term success.
Mangwana Capital, the manager of the existing strategic investor Mangwana Opportunities, played a crucial role in coordinating the placement to institutional Zimbabwean investors.
Managing Director of Mangwana Capital, Ben Mbanga, remarked, “Mangwana is pleased to have led this strategic investment process. 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 and Mukuyu discovery is a potential game-changer for the country, which can bring about significant economic benefits and energy security to the entire region.”
The strategic local capital raise underscores the significant local interest and the strategic importance of the Cabora Bassa Project to Zimbabwe.
Invictus's ongoing efforts to secure a strategic partner and advance the project are well-supported by this new influx of capital.
