NWM Successfully Negotiates Extension of Debt Facility to June 2013
TSX Venture Exchange
TORONTO, Sept. 21, 2012 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) announces an extension of the debt facility coming due in December 2012 to June 14, 2013. US $500,000 of interest payable in September and October will be capitalized in the form of a convertible debenture with a strike price of $0.06 due September 20, 2013. This convertible bears interest at a rate of 15% and is not subject to amortization repayments. A cash payment of $150,000 is payable and 10,500,000 common shares of NWM will be issued on closing.
"We continue to believe in, and support NWM and the development of the Lluvia-Jojoba project. As a principal stakeholder, we look forward to the development of the company into a stronger and more valuable entity as it builds through both organic growth of its existing assets, as well as through future acquisition opportunities," said David Lewis, CEO of Renvest Mercantile Bancorp."
Chris Berlet, President and CEO of NWM, stated "NWM is pleased to have the continuing support of a holder of both debt and equity, particularly during the anticipated endgame of NWM's strategic review process. The debt extension will allow the Company to make the necessary capital investments during the remainder of the year to ensure that the Company can grow its production to 2013 targets above 30,000 ounces per year, and will facilitate the exploration that will grow the Company's resource and reserve base. Renvest and its Global Resource Fund are integral players in the financing and development of NWM's Lluvia de Oro and La Jojoba mine. NWM will advance capital expenditures enhancing value for all stakeholders."
The 10,500,000 common shares to be issued are subject to a hold period of four months from closing.
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