Shares in mining company Fortis Mining fell 20.8% (ASX:FMJ) on Tuesday, on the day the company revealed it had secured a $60 million equity facility.
The gold, nickel and copper exploration company, which listed in December, said it had negotiated an increase in its equity facility limit with global investment fund Global Emerging Markets (GEM) from the original $10 million.
The new facility has a term of three years, and allows draw down notices to be issued at any time.
As part of the arrangement, Fortis will issue GEM 10 million options exercisable at $2 each. These options have a five year term, but may be cancelled and re-issued if the share price falls below a certain threshold.
The new facility requires shareholder approval, which will be sought at a general meeting in the coming weeks, Fortis said.
FMJ shares, which commenced trading at $0.250, declined to $1.900 on Tuesday. The shares grew 45% in one day in early March, hitting a peak of over $2.750.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.