TSX Venture Exchange
Symbol: NWM
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 Koningen.
There are several conditions precedent that must
be fulfilled by September 30, 2013 in
order to complete the debt extension, including:
(a) |
Global must be satisfied with a newly revised production plan
and budget to reflect NWM's new mining strategy; |
(b) |
Existing production covenants must be adjusted to reflect the
revised production plan; and |
(c) |
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