TSX Venture Exchange
Shares Outstanding: 220,008,527
TORONTO, June 3 /CNW/ - NWM Mining Corporation (TSX-V: NWM) is pleased to announce signing of a term sheet for a standby financing facility which will be used for start up of the Lluvia de Oro and La Jojoba gold mines located in Sonora State, Mexico.
A convertible debenture of $1,100,000 (USD), which is due on June 17, 2010, will be repaid in cash from the Company's existing funds.
The $500,000 (USD) debt from a bridge loan originally obtained in December, 2008 and due June 10, 2010 will be extended to December 10, 2010.
A term sheet for a new standby credit facility has been signed, with a closing date of June 15, 2010. Under this facility, up to $6,000,000 (USD) may be drawn down over the six months following closing, with repayment of all outstanding amounts due 18 months following closing. Interest will be charged at a rate of 15% per annum and a standby charge of 0.25% per month applies to all available funds not yet drawn down. Up to two million common shares may be issued in connection with the total drawdown of this facility. The term sheet gives the Company an option under which it may elect to designate $1,000,000 of the total as a convertible debenture when drawn down, convertible at the rate of $0.20 per share for a period of 18 months.
The Company acknowledges Renvest Mercantile Bancorp and the Global Resource Fund for their assistance with this and previous financings that have progressively brought the Company closer to mining and production of gold, silver and copper at the Lluvia de Oro and La Jojoba gold mines project.
"This facility will fund start up of commercial mining and gold production at the Lluvia de Oro mine, and follows earlier receipt of the required mining, blasting and water use permits. The gold and copper recovery plants have already been commissioned and there is pad space available to take new Ore from the mine. Mining and gold recovery operations at Lluvia de Oro are set to begin in early July." said NWM President & CEO, Chris Berlet.
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: For further information: please contact NWM Mining Corporation at (416) 364-6799