Traders took profits on Monday sending Avanti Mining Inc. (CVE:AVT) (PINK:AVNMF) stock price back down by 10.7% and ignoring the impact of the most recent news.
AVT share price had gaped up on Friday in reaction to the latest news from the company. However, the volatile trading during the session had clearly indicated indecision and led to large scale correction this week.
The price jumped up after Avanti announced to have entered into a mandate letter expecting to borrow $640 million to finance the development of Kitsault molybdenum mine. The company made a preliminary deal with five lenders – banks and other financial institutions.
The letter was already preliminary approved by all of them but due diligence still has to follow for decision on final approval to be taken. The results of due diligence will also affect the terms of this loan.
Another price run will likely come after the company makes final arrangements for the loan they’ve recently applied for.
Currently the company wants to get $560 million as a senior debt that would stand out for 12 years. The remaining $80 million would be borrowed under a standby cost over-run facility for a period of 8 years.
