Equity fund to raise stake in oil, gas project

Joe Mutizwa
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HARARE – Mangwana Opportunities, a Zimbabwean private equity fund, has an opportunity to increase its stake in gas and exploration junior miner, Invictus Energy Limited, after recently completing the acquisition of an unspecified shareholding in the company.

Completion of the equity transaction, through the placement of 12,5 million shares with Mangwana Opportunities for $440 000 (Australia Dollars), saw the simultaneous appointment of former Delta chief executive Joe Mutizwa to the board of Invictus Energy.

The capital raised will be used for further exploratory and project development work relating to Invictus Energy’s oil and gas project in Muzarabani.

Invictus Energy is an Australia Stock Exchange listed independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa.

Its asset portfolio consists of a highly prospective 250 000 acres within the Cabora Bassa Basin in Zimbabwe.

The Special Grant 4571 contains the world class multi-trillion cubic feet Mzarabani and Msasa conventional gas condensate prospects.

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 and Economic Development.

The shares were placed at a price of $0,035 per share; a 91 percent premium to the preceding 5-day volume weighted average price (VWAP) of $0,0183 when the placement was announced on April 30, 2020.

The placement is a 20 percent to premium to the last closing price of $0,029. The shares issued to Mangwana Opportunities will be held in escrow for six 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,” Invictus said.

The shareholding acquisition saw the appointment of respected Zimbabwean business person Mutizwa, current chairman of Mangwana Capital, as a director of the Company’s 100 percent owned local subsidiary Invictus Energy Resources Zimbabwe.

Mutizwa served for 10 years as chief executive officer of Delta Corporation, one of Zimbabwe`s largest listed companies before taking early retirement in 2012.

Source: Business Weekly