Business Reporter
AUSTRALIAN energy firm, Invictus Energy says it has completed the independent review of the Mutapa Investment Fund (MIF) backed Petroleum Product Sharing Agreement (PPSA) on the back of optimism that once executed the deal will unlock a number of opportunities across the region.
According to the arrangement, Invictus Energy is set to float 151,515,152 shares worth US$10 million in a private placement out of which Mutapa will underwrite US$5 million of the share issue while a private equity fund, Mangwana Capital will inject another US$5 million to acquire the total shares on offer.
Subsequently, MIF will then represent the government’s stake in the gas project on the back of yet another ongoing discussion on a Petroleum Production Sharing Agreement outlining how dividends will be spread between the concern and the government.
In the latest market development, a state run media outlet Friday reported that Invictus Energy MD, Scott MacMilan said its legal counsel had completed the independent review of the petroleum product sharing agreement (PPSA) between the firm and the Government representatives, MIF.
Managing director Scott MacMilan said in a letter that the review completed by European legal counsel was a major milestone for the company and was fast approaching execution.
“Once executed, the PPSA will ensure the long term success of the Cabora Bassa Project, which has potential to address the region’s growing demand for a reliable energy source. We continue to discuss strategic partnerships and farm-out options with a range of stakeholders that have the potential to support further exploration and development of the Cabora Bassa Project,” he said.
Headed by seasoned banker and former Reserve Bank of Zimbabwe (RBZ) governor, Dr John Mangudya, MIF, formerly known as the Sovereign Wealth Fund of Zimbabwe was promulgated in 2015 by the Sovereign Wealth Fund Act.
It was later renamed the MIF after the re-election of Emmerson Dambudzo Mnangagwa as the president of Zimbabwe, doing so by using Statutory Instrument 156 of 2023, bringing around 29 State Owned Enterprises under its control.
Its main task is to ignite life into several ailing firms under its purview as well as creating a locally controlled capital base which will in turn spur economic growth and contribute towards citizens’ long term welfare.
