Fortune Oil saw its shares rise after it announced it had increased its investment in Armenian iron ore mines, StockMarketWire reported.

In January, Fortune took a 35% equity interest in Bounty Resource Armenia, a company which controls three iron ore mines in Armenia, for $24m with an option to increase this holding to 50% for an additional investment of $16m.

Fortune says it has successfully amended the option agreement to allow it to increase its equity interest from 35% to 65% for the same original consideration of $16m.

Prior to exercising the option, Fortune Oil's effective equity interest in the three Armenian mines is 33% which after option exercise increases to 51%. The option exercise consideration of $16 million will be financed from the company's existing cash reserves.