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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.