TORONTO, June 28, 2013 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) announces that, further to its news release dated June 14, 2013, it has paid $75,000 USD and issued 28,533,000 common shares (the "Bonus Shares") to the Company's lender, Global Resource Fund (the "Lender"), as the initial extension fee for extending the maturity date on the Company's current debt facility (the "Facility") of $18,500,000 USD. Following the issuance of the Bonus Shares, the Lender holds 60,033,008 common shares in the capital of NWM.
The due date on the Company's current debt facility has been extended from June 2013 to September 2014 and the effective interest rate on the principal will be reduced 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 reduce the interest rate and fully extend the loan until September 30, 2014, there are several conditions which must be satisfied by September 30, 2013 (see news release dated June 14, 2013 for further details).
The transaction is subject to the final approval of the TSX Venture Exchange. The Bonus Shares are subject to a four month and one day hold period expiring on October 27, 2013.
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.
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
Email: [email protected]