NWM Announces Further Debt Extension to June 30, 2014; Provides Financing and Financial Update
02.06.2014 | CNW
TORONTO, June 2, 2014 /CNW/ - NWM Mining Corp. ("NWM" or the "Company") (TSX-V: NWM) announces that it has extended the due date of the current debt outstanding from April 30, 2014 to June 30, 2014. The extension provides further time (see the Company's press releases dated January 30, 2014, November 29, October 31 and October 1, 2013) extension for the ongoing negotiations to be concluded with the Company's lender (Renvest Mercantile Bancorp through its Global Resource Fund), as set out in the Company's press release dated June 14, 2013.As previously announced in the release dated November 7, 2013, pursuant to the ongoing efforts to complete the company's loan agreement extension, Global Resource Fund has agreed to continue to temporarily defer and accrue monthly interest payments. Additionally, Global Resource Fund has provided an additional $200,000 demand loan to cover several one-time payments required which will be repaid in 2014 once delayed tax receivables from the Mexican tax authorities have been received. The demand loan carries an interest rate of 15%.
Darren Koningen, President and CEO for NWM noted "We continue to engage in constructive discussions with our lender and thank them for their ongoing support. As part of our strategic alternatives review process, we are continuing to advance discussions with a number of parties."
The March 31, 2014 financial statements and Management Discussion and Analysis have been filed on SEDAR. Net loss for the first quarter was $1,166,754 as compared to income of $164,471 before tax in the comparative quarter in the prior year. Excluding non-cash items overall NWM corporate operations for the quarter were a loss of $697,116. At the mine level operations produced a gross profit (excluding non-cash items) of $269,921.
During the first quarter 544,919 tonnes of ore were mined containing approximately 7,188 ounces of gold. The mine produced 5,117 gold ounces in the quarter.
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, this has now shifted 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 Corp.
Contact
NWM Mining Corp.
(416) 364-6799.