$1.5 mil loandNWM Mining enters $1.5-million (U.S.) bridge loan deal
2009-06-16 06:49 MT - News Release
NWM MINING CORPORATION ANNOUNCES A US $1,500,000 BRIDGE LOAN
NWM Mining Corp. has entered into a bridge loan agreement for$1.5-million (U.S.) with Renvest Mercantile Bancorp through its GlobalResource Fund, which previously, in December, 2008, provided a creditfacility to the company, and which subsequent to that, in January,2009, acquired and restructured a then-outstanding convertible bondobligation of the company. Uses of proceeds for the bridge loan include$500,000 to finance partial repayment of an outstanding capital loanprovided by BioteQ Environmental Technologies Inc., financing forproduction development of the Lluvia-Jojoba mine project and generalworking capital.
In connection with the bridge loan, the company has issued toGlobal three million common shares that are subject to a four-monthhold period ending Oct. 13, 2009, as required by the TSX VentureExchange. The company has also granted to Global a 1-per-cent netsmelter royalty (NSR) on top of the current 1-per-cent NSR, for a totalof 2-per-cent NSR on the company's Sierra Pinta and P-II Coloradoprojects.
Concurrent with the closing of the bridge loan, the companyentered into a termination, consolidation and reconciliation agreementwith BioteQ which sets out a payment plan for the outstanding debtamounts payable to BioteQ. After the first payment of $500,000 toBioteQ, which has been paid upon closing of the bridge loan, the nextpayment is planned for Jan. 1, 2010. Scheduling BioteQ debt repaymentto continue in 2010 allows the company the financial flexibility tofocus its efforts on resuming commercial production, projectdevelopment and exploration initiatives at the Lluvia-Jojoba mineproject.
Upon closing of the bridge loan, BioteQ and Global entered intoa collateral sharing agreement governing the creditors' security on theLluvia-Jojoba mine project.