Zimbabwe-focused explorer Invictus Energy has terminated all discussions with Qatar-based Al Mansour Holdings (AMH) regarding a proposed strategic partnership in Africa's upstream sector. The company described the terms and conditions sought by AMH as "unacceptable and non-commercial," citing provisions contrary to Australian Stock Exchange listing rules and regulatory requirements.

Details of the Terminated Agreement

The cooperation arrangement, outlined last year, centered on forming an upstream joint venture targeting African opportunities. A key element involved AMH acquiring a stake in Invictus, initially set at 19.9% for A$37.8 million and later revised to 50%. Furthermore, AMH had agreed to provide up to US$500 million in funding to develop the Cabora Bassa gas discovery in Zimbabwe, contingent on separate binding agreements.

Reasons for Termination

Invictus stated that, despite deferrals to finalize the deals, it became apparent AMH did not intend to satisfy its contractual obligations under the proposed share purchase agreement. The company considers AMH's conduct a repudiation of that agreement. Consequently, Invictus elected to terminate the subscription agreement immediately and cease all talks to protect its assets, governance framework, shareholder interests, and ensure regulatory compliance.

Market and Strategic Impact

Following the announcement, Invictus's share price collapsed by 56.3% to A$0.059. While expressing disappointment, the board believes the termination is in the company's and shareholders' best interests. Invictus continues to actively engage with several alternative strategic and funding counterparties as well as potential industry partners, noting it is encouraged by the level of interest received.