TSX Venture Exchange Symbol: NWM
TORONTO, Jan. 31, 2014 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) announces that it has extended the due date of the current debt
outstanding from January 31, 2014 to April 30, 2014. The extension
provides a further three month (see the Company's press releases dated
November 29, October 31 and October 1, 2013) extension for the ongoing
negotiations to be concluded with the Company's lender (Renvest
Mercantile Bancorp through its Global Resource Fund), as set out in the
Company's press release dated June 14, 2013.
As previously announced in the release dated November 7, 2013, pursuant
to the ongoing efforts to complete the company's loan agreement
extension, Global Resource Fund has agreed to continue to temporarily
defer and accrue monthly interest payments. Additionally, Global
Resource Fund has provided a $300,000 demand loan to cover several
one-time payments required at year-end which will be repaid in 2014
once delayed tax receivables from the Mexican tax authorities have been
received. The demand loan carries an interest rate of 15%.
Gold production for 2013 totaled 19,700 ounces, a slight increase over
production in 2012 of 19,100 ounces. Expansion plans for the mining
operations are complete pending a recapitalization of the company.
Darren Koningen, President and CEO for NWM noted "We continue to engage
in constructive discussions with our lender and thank them for their
ongoing support. As part of our strategic alternatives review process,
we are continuing to advance discussions with a number of parties.
Despite the capital constraints in the business and the significant
challenges in the gold markets during the second half of 2013, our
operations team has been able to successfully maintain stable
production levels at the mine."
David Lewis, Chairman and CEO, Renvest Mercantile Bancorp, stated that
"We commend NWM's management and its production team at the mine site
who've done an exemplary job directing the mine through a difficult
time in the marketplace and positioning it for expansion once a
recapitalization is completed in the near future."
About NWM Mining Corporation
NWM is in commercial gold production at its wholly owned Lluvia-Jojoba
gold mine. The mine is an open pit heap leach operation in Sonora
State, Mexico. Management believes the property is significantly
under-explored and hosts potential to provide further gold discoveries
and resource and reserve upgrades. While management has focused in the
past on developing the mine and supporting cash flows, this has now
shifted to increasing mining rates and drilling to expand geological
resources and reserves.
Additional information about NWM can be found on the NWM website at www.nwmcorp.ca or on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy of this release.
SOURCE: NWM Mining Corporation
For further information:
please contact NWM Mining Corporation at (416) 364-6799.