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Bullboard - Stock Discussion Forum NWM Mining Corporation NWMMF

GREY:NWMMF - Post Discussion

NWM Mining Corporation > NR - Extension of Debt Facility to June 2013
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Post by production05 on Sep 21, 2012 9:26am

NR - Extension of Debt Facility to June 2013

PRESS RELEASE

FOR IMMEDIATE RELEASE TSX Venture Exchange

September 21, 2012 Symbol: NWM

NWM Successfully Negotiates Extension of Debt Facility to June 2013

TORONTO, ON.

 

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.

Additional information about NWM can be found on the NWM website at

www.nwmcorp.ca or on

SEDAR at

www.sedar.com.

For further information, please contact NWM Mining Corporation at (416) 364-6799.

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

Page 2 of 2

NWM Mining Corporation

402 – 121 Richmond Street West

Toronto ON, M5H 2K1, Canada

Phone: (416) 364-6799

Fax: (416) 364-2595

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.

Comment by babedinkleman on Sep 21, 2012 9:37am
This post has been removed in accordance with Community Policy
Comment by scanner18 on Sep 21, 2012 11:12am
might explain why there is constantly a mil plus on the ask at six
Comment by babedinkleman on Sep 21, 2012 4:33pm
This post has been removed in accordance with Community Policy
Comment by scanner18 on Sep 21, 2012 4:46pm
nothing but a big fat consolidation coming up to be thrown at the shareholders for the next general meeting imho
Comment by zzthnx on Sep 21, 2012 9:07pm
"Either way, could be much worse....NWM will survive." Exactly, it's a big relief. Hopefully long enough of an extension to sell the company for a decent price. My ideal scenario would be that TMM scoops us up in a share swap.
Comment by stu.2 on Sep 21, 2012 9:33pm
Ok they got it done...wait no they didn't a six month extension at that cost is not a solution....We will be dealing with this again in March as they scramble to deal with this debt in the mean time they will be unable to fully realize the potential of this property...Little to no money to spend on exploration and to get to 30,000 + ounces new investment in leach pads required in early ...more  
Comment by eduardo12 on Sep 21, 2012 9:51pm
Chris Berlet: cberlet@nwmcorp.ca (416) 364-6799   eom
Comment by babedinkleman on Sep 22, 2012 6:43am
This post has been removed in accordance with Community Policy
Comment by jerseyman2 on Sep 22, 2012 8:48am
Again, your points are not to be denied, and I agree with your sentiment.  The good thing is that NWM basically bought some time to get away from that wall and see if they can get production up and costs down over the next couple of quarters. In order to have some sort of " DEAL " consumated, there has to be an improvement in economics and sure it cost us $$$$$ to get this extension ...more  
Comment by slick05 on Sep 22, 2012 2:02pm
The 6 month extension is exactly what is needed. Management negotiated a fair price for the extension. No need to look at the nickel and dimes of the 'bonuses' as every company that needs money goes through the same issues. Someone said it was the SART issue that put the company in a hole, not quite. Would you rather pay $2m to get out of a lawsuit or $9m plus lawyer fees after the lawsuit ...more  
Comment by stu.2 on Sep 22, 2012 5:03pm
You make some good points slick but  SART wasn't just a 2 million settlement, I'm sure there were some initial costs, as well as some lease payments and I vaguely remember a loan from Bioteq that needed to be dealt with. Even if it was just 2 million that is a quarter of present productions profitability that could have been used to explore the property. Remember this is for a ...more  
Comment by finvestor on Sep 24, 2012 11:23am
A small update on this from caesars report:   Last Friday, NWM Mining Corp. (NWM.V) announced an update regarding their debt situation. The company announced they were able to extend the maturity date of their debt for six more months. Although it’s reassuring they were able to get six additional months, the price for the extension was high. Not only did the company had to pay $150,000 in ...more  
Comment by twpt on Sep 24, 2012 4:36pm
they have 6 more months now to find new financing. They might want to talk to SSL and get a streaming deal. Can't be any worse than this garbage financing. Even better, sell to someone who has the proper bankroll.
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