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