Polymetals Resources (ASX:POL) has reduced its $20 million debt facility with Ocean Partners to $10 million due to security release challenges, replacing the undrawn portion with a AU$15 million equity placement at AU$0.80 per share to ensure sufficient working capital during the Endeavor Mine production ramp-up, according to a Monday Australian bourse filing.

The initial $10 million tranche was drawn by March, but the company was unable to secure additional security from historic holders required for further tranches, leading to a mutual agreement with Ocean Partners to reduce the facility, the filing said.

The company will issue 18.75 million new shares at AU$0.80 each to replace the undrawn debt, raising AU$15 million for working capital, with settlement expected on July 11 and trading to commence on July 14, the filing added.

The company's shares fell 5% in recent Monday trade.