TSX Venture Exchange
Symbol: NWM
TORONTO, Oct. 1, 2013 /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
September 30, 2013 to October 31, 2013. The extension provides a
further one month for the ongoing documentation to be concluded
with the Company's lender (Renvest Mercantile Bancorp through its
Global Resources Fund), as set out in the Company's press release
dated June 14, 2013. All other terms
as were announced previously remain in place including the
September 30, 2014 maturity date for
the amended and restated credit agreement.
Global also owns promissory notes (the
"Notes") convertible into 25,000,000 Common Shares. After
accounting for the Common Shares issuable upon Global exercising
its conversion right in respect of the Notes, Global would have
ownership or control of 14.7% of the issued and outstanding Common
Shares immediately after the issuance of the Bonus Shares.
The Bonus Shares were issued as non-cash consideration. Pursuant to
the terms of the agreement between NWM and Global to extend the due
date of the Facility from June 2013
to September 2014 and to reduce the
interest rate on the principal from 15% to 12.5% per annum, Global
received $75,000 cash consideration
from NWM and the Bonus Shares, being that number of Common Shares
required to bring Global's ownership interest in the outstanding
Common Shares to 10% on a fully-diluted basis. The full extension
of the maturity date is subject to conditions. If the conditions
are met, Global will receive from NWM an additional $75,000, a reduction in the strike price of the
Notes to $0.05, an extension of the
maturity date to September 30, 2014,
and that number of Common shares which will bring Global's
ownership interest in the outstanding Common Shares to 20% on a
fully diluted basis. This will result in GRF becoming a new
"Control Person" by the policies of the TSX Venture Exchange.
Global acts as financing partner and holds
equity and debt of NWM for investment purposes. Global intends to
evaluate its holdings in the future and may increase or decrease
its equity position in NWM as circumstances warrant.
This news release is issued pursuant to Section
102.1 of the Securities Act (Ontario) and National Instrument 62-103 -
The Early Warning System and Related Take-Over Bid and Insider
Reporting Issues. A report containing additional
information with respect to the foregoing matters will be filed
with the Securities Commission in each jurisdiction where NWM is a
reporting issuer and will be available for viewing through the
Canadian System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com. A copy of the report may also be obtained
by contacting Global or NWM at their respective addresses
below.
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.
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