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Oliver Kazunga, Senior Business Reporter

AUSTRALIAN firm, Invictus Energy will seek shareholder approval to ratify the second tranche of the US$10 million placement required for the development of the company’s oil and gas project in the Cabora Bassa Basin, north of Zimbabwe.

Late last year, Invictus discovered two condensate gas deposits in the Cabora Bassa Basin at companies two exploration wells drilled in Mbire, Mashonaland Central Province.

In its latest update, Invictus said the shareholder approval would be sought at an Extraordinary General Meeting in October this year.

Early this month, the oil and gas exploration junior, which has its primary listing on the Australian Stock Exchange, announced its listing on the Victoria Falls Stock Exchange (VFEX) through a private place being used to raise the US$10 million capital from local institutional investors.

The institutional placement is managed by Mangwana Capital (Private) Limited, with US$5 million having been underwritten by Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, and 10 percent shareholder in Invictus in the oil/gas project.

“Following regulatory approval of the notice of meeting, the company will hold an Extraordinary General Meeting (EGM) in approximately early October to seek shareholder approval to ratify the second tranche of the US$10 million placement.

“The company completed a US$10 million strategic investment announced on 29 July 2024 through long-term shareholder, Mangwana Capital which was partially underwritten by the Mutapa Investment Fund.”

The second tranche seeks to raise US$3,5 million to be used to advance the Cabora Bassa Project, including its Mukuyu-2 well flow testing, appraisal drilling and well test design studies, reservoir engineering studies and early-stage development  concepts.

As a result of the strategic investment, which is historic for Invictus, investors in Zimbabwe will now have the ability to hold and trade securities in the company through a dual listing on VFEX.

The oil and gas project is expected to guarantee Zimbabwe’s energy security, propel economic growth, improve Government fiscal revenue as well as creating new jobs and downstream industries.

Meanwhile, as part of the EGM process, the oil and gas exploration company Invictus said it will also seek approval to issue the board of directors with incentive options and as a replacement for the director incentive options that expired last month.

“The incentive options will have an exercise price of approximately 50 percent to the recent Invictus volume weighted average share price and have a three-year term,” it said.