Renvest is the company that own`s the NWM secured debt.
Revest also has $12.4 million invested in Jaguar Mining (in Brazil). Yesterday, Jaguar issued an NR saying they plan to raise $20 million and will repay the $12.4 million owed to Renvest. The offer is expected to close around March 26/15, if it comes together alright.
https://www.newswire.ca/en/story/1494451/jaguar-mining-announces-private-placement-of-up-to-20-million-of-12-senior-secured-convertible-debentures-and-strategic-review-process
Obviously, it is highly unlikely that Renvest would use another $12 million on NWM Mining (probably close to no chance at all), but it would be nice if it was at all possible. Given NWM`s silence, they are likely no where closer to finding another debt funding partner (even though funding in the gold space has picked up this year). Nonetheless, it would be nice if they were to bundle this $12 million up with the existing $20, then moved the total $32 million into a long-term debt deal that with start payment date in, say, 2 years time. And, reduce the interest payment from 15% to something much more manageable.
Renvest already owns 60+ million of NWM`s shares. Maybe NWM can give them more free bonus shares as incentive. It would benefit them, as they would then own a bigger percentage of the common shares, they would receive interest payment on debt, they would get their $32 million back own NWM is fullly ramped up and they get their royalty payments (as it gives the mine in production). It`s a win on all fronts for them. If they put NWM into bankruptcy then Renvest will likely not get back their $20 million from sale of mine (likely not in this severelly depressed gold environment). They will lose their 60 million NWM shares. They will have to wait maybe several years for the new owners to start up the mine again for Renvest to begin collecting NSR royalty payments again - bankruptcy and sale of asset can take years and then a long time after that for the new owners to restart mine). It`s in their best interest to work something out with NWM, if they feel that new NWM management is now doing a good job with the mine.
Anyway, Renvest holds all of the cards. We are at their mercy, especially since NWM has been so slow to find a solution for us NWM shareholders. We will have to live with whatever they decide.
The $12 million is our answer, if we can get it from somewhere. It will allow us to ramp up production from 18,000 ounces per year to 60,000 ounces, while reduce cash cost per oz and increase ounce in the ground reserves. With that type of production cash flow, we would be able to finally begin reducing the debt.