TSX Venture Exchange
TORONTO, June 14, 2013 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) is pleased to announce that it has reached an agreement on terms for an
extension of the due date on the Company's current debt facility of
$18,500,000 USD from June 2013 to September 2014 and reduced the
effective interest rate on the principal from 15% to 12.5% per annum.
The revised interest rate has the potential to reduce interest payments
over the period by approximately $500,000 USD. In order to fully
extend the loan until September 30, 2014, there are several conditions
which must be satisfied by September 30, 2013.
In addition, the Company's lender, Global Resource Fund ("Global"),
through its manager, Renvest Mercantile Bancorp Inc. ("Renvest") has
also agreed to discuss a term facility pursuant to an update of gold
resources/reserves for the project which is planned for late summer
2013 (see details of 5,000 meter drill program currently underway at
Lluvia de Oro in the Company's Press Release dated April 4, 2013).
As part of the new direction, the Company's current CEO, Chris Berlet is
stepping down to make room for Darren Koningen, P.Eng who has agreed to
become interim CEO of NWM, effective immediately. Mr. Berlet is also
stepping down from NWM's board of directors, effective immediately. As
was previously announced on May 22, 2013, Darren is accompanied by a
site management team based in Mexico that has a record of success in
building and developing heap leach gold mines. Most recently, they
were involved with the founding and growth of Castle Gold Corporation
(acquired by Argonaut Gold Inc.).
"We have an opportunity to take NWM Corporation from a single asset,
development stage company to a growing gold producer supported by our
financing partner, Renvest. Our first priority is to complete the
ramp-up at Lluvia de Oro. We have now completed several months of
reviewing and optimizing site operations at the Lluvia de Oro gold mine
and believe both increased production rates and higher quantities of
geological reserves can be attained in the near term," said Darren
There are several conditions precedent that must be fulfilled by
September 30, 2013 in order to complete the debt extension, including:
Global must be satisfied with a newly revised production plan and budget
to reflect NWM's new mining strategy;
Existing production covenants must be adjusted to reflect the revised
production plan; and
NWM will propose a new slate of directors for its upcoming annual and
special meeting of shareholders that will consist of a reduced total of
five (5) nominees, satisfactory to Global.
In consideration for entering into this extension, Global will
immediately receive $75,000 and that number of NWM shares, which will
bring their interest in the company to 10%. Global currently holds
approximately 5.5% of the issued and outstanding shares of NWM. Once
all conditions precedent have been satisfied and the full extension is
in place, Global will receive an additional $75,000 and that number of
NWM shares which will bring their interest to 20% and will result in
Global becoming a new "Control Person" as defined in the TSX Venture
Exchange (the "Exchange").
These transactions are subject to the approval of the Exchange and
disinterested shareholder approval, as required.
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, the focus in
2013 will shift to increasing mining rates and drilling to expand
geological resources and reserves. Cash flows from mining operations
are expected to be used for exploration which can result in adding
resources and creating shareholder value.
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.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release includes "forward-looking information", as such term
is defined in applicable securities laws. Forward-looking information
includes, without limitation, the success of exploration activities,
price outlooks, production expectations and other similar statements
concerning anticipated future events, conditions or results that are
not historical facts. These statements reflect management's current
estimates, beliefs, intentions and expectations; they are not
guarantees of future performance. The Company cautions that all forward
looking information is inherently uncertain and that actual performance
may be affected by a number of material factors, many of which are
beyond the Company's control. Accordingly, actual future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. All statements are made as of the date of
this news release and the Company is under no obligation to update or
alter any forward-looking information.
SOURCE: NWM Mining Corporation
For further information:
Darren Koningen, President & CEO or Chris Chadder, CFO