The company said it had struck agreements with Hong Kong-based institutional investor Yubang Industry Development to raise $224 million through the issue of shares and convertible notes, with a further $12 million to be sourced privately from the issue of convertible notes with a face value of $1 and April 15, 2012 expiry date.

Subject to necessary shareholder approvals, Fortis intends to raise the $236 million from separate initial issues of 10 million shares and 12 million convertible notes followed by subsequent separate issues of 30 million shares at $1.60 a share and 160 million convertible notes.

A meeting of shareholders is scheduled for late next month.

Funds will also be used so Fortis can complete due diligence into the proposed acquisition of the Chelkar and Zhilyanskoe potash mines, and to partially fund the second tranche payment of $24 million for the acquisition.

In the meantime, it continues to work with global potash experts Ercosplan in a bid to produce a JORC-compliant report on the Kazakhstan projects.

Shares in Fortis were down 0.51% or 1c in morning trade to $1.95.