Shares in Nativo Resources PLC (AIM:NTVO, FRA:A3Z) fell 19% to 0.31p after the Peru-focused gold miner established a new at-the-market facility of up to £5 million with Axis Capital Markets.
The arrangement replaces an earlier facility announced in November 2025 and appoints Axis as joint broker alongside existing adviser Zeus Capital.
An at-the-market facility allows a company to sell new shares into the open market at prevailing prices over time, rather than through a fixed-price fundraise.
It offers flexibility but creates an ongoing source of potential dilution, which likely explains the sharp share price reaction.
Under the new arrangement, Nativo will issue Axis with an initial tranche of 120 million shares at par value, representing approximately 14.93% of the enlarged share capital.
Axis will sell the shares subject to a company-set floor price, a maximum daily volume of 3% of issued share capital and a maximum discount of 5%.
Net proceeds will allow the company to service a convertible loan and invest in the Bonanza gold mine in Peru, where the first sale of stockpiled vein material is anticipated in May.