Invictus Energy Limited on 24 March said it had received firm commitments from new and existing investors to raise A$8m (eight million Australian dollars), equivalent to US$6m via a share placement.
The Australia-listed firm said the funds will be used for the SG 4571 seismic acquisition campaign in Zimbabwe and the ordering of long-lead drilling items for the Muzarabani-1 exploration well. Invictus managing director Scott Macmillan said:
We are extremely pleased with the excellent support received from new and existing shareholders and it is a strong endorsement of our Cabora Bassa project and the exciting and world-class Muzarabani-1 prospect which the company is preparing to drill.
The company added that the placement funds will allow the company to start a 2D seismic acquisition campaign to refine the drilling targets in the stacked Muzarabani prospect and identify additional prospectivity in the SG 4571 permit.
Invictus Energy said it will also use part of the proceeds from the placement to order long lead drilling equipment and undertake a rig tender exercise.
The placement will also provide ongoing working capital to support the development of the project as the firm continues to prepare for a high-impact basin opening drilling campaign, anticipated in late 2021 or early 2022.
Invictus’s Cabora Bassa project, which comprises the Muzarabani and Msasa gas and condensate prospects, received environmental approval from the Environmental Management Agency (EMA) in August last year.