Mining Gold and Silver by Peru focused Nativo Resources Sees 19 Percent Share Price Fall After Establishing 5 Million Pound Equity Facility

Shares in Nativo Resources PLC fell 19 percent to 0.31 pence following the announcement that the Peru-focused gold miner has established a new at-the-market equity facility of up to £5 million with Axis Capital Markets. The arrangement supersedes an earlier facility disclosed in November 2025 and positions Axis as joint broker alongside the company’s existing adviser Zeus Capital.

An at-the-market facility permits a company to sell newly issued shares into the open market at prevailing prices over time, rather than through a fixed-price fundraising. Whilst this structure offers flexibility, it creates an ongoing source of potential dilution, which likely accounts for the sharp decline in the share price.

Under the terms of the new arrangement, Nativo Resources will issue Axis with an initial tranche of 120 million shares at par value, representing approximately 14.93 percent of the enlarged share capital. Axis will sell the shares subject to a company-set floor price, a maximum daily volume of 3 percent of issued share capital and a maximum discount of 5 percent.

The net proceeds will enable 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. The timing of this facility suggests management is seeking to capitalise on near-term production milestones to strengthen the balance sheet, albeit at the cost of shareholder dilution in the immediate term.

The market reaction underscores investor sensitivity to equity issuance structures that lack a clear end date or maximum dilution cap. Whilst the facility provides operational flexibility for Nativo Resources, the prospect of continuous share creation has evidently weighed on sentiment, particularly given the substantial initial tranche relative to the existing share capital.