Invictus Energy (ASX:IVZ) is having quite a run, following up the price-swinging news that the Qatar Royal Family had picked up a 19.9% stake through a subsidiary – and the subsequent +277% jump – with confirmation its Cabora Bassa project in Zimbabwe has been granted National Project Status.
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Zimbabwe’s finance minister, Professor Mthuli Ncube, held a series of “constructive meetings” with Invictus chiefs before granting the status.
Alongside the national tick, Invictus has signed a Petroleum Production Sharing Agreement.
That side of the deal will see the Australian energy producer share its Cabora Bassa output with the African government – all fairly standard in its terms, it’s understood.
“We’re pleased to be working closely with Invictus Energy through its recent strategic partnership with Al Mansour Holdings [the Qatar subsidiary] and to finalise the PPSA to ensure a transparent, fair, and commercially sound agreement that benefits the people of our nation,” Prof. Ncube said today.
Invictus’ managing director, Scott Macmillan – who one can only imagine is exuberant by the last few weeks – similarly spruiked the agreement and said it marked “pivotal milestones” for the company and Cabora Bassa.
“The PPSA provides the stable and transparent framework required to progress development, while the NPS delivers fiscal benefits to reduce costs and accelerate execution,” the company chief explained.
“This recognition underscores the strategic importance of our discovery… we’re grateful for [the Government of Zimbabwe’s] support and look forward to executing the PPSA and moving towards development.”
The National Project Status is often reserved for projects deemed of strategic importance to the country and considered critical to Zimbabwe’s growth.
With the status, Invictus can now call upon a range of fiscal and non-fiscal incentives, ranging from duty exemptions and fast-tracked permitting to streamlined access to key infrastructure and regional services.
IVZ has enjoyed an explosive price surge through August, and that now continues into September on this news; the stock’s up +11% today.
Anyone buying into the energy producer will now pay 20cps.
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