NWM Announces Further Debt Extension to December 31, 2014; Provides Financing and Financial Update
17.12.2014 | CNW
TORONTO, Dec. 17, 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 September 30, 2014 to December 31, 2014. The extension provides further time for the company to continue its refinancing efforts. As previously announced, Global Resource Fund has agreed to continue to temporarily defer and accrue monthly interest payments. Additionally, Global Resource Fund has provided an additional $1,950,000 demand loan to cover several one-time payments required which will be repaid once delayed tax receivables from the Mexican tax authorities have been received. The demand loan carries an interest rate of 15%. While the Company is undertaking all efforts to successfully conclude a refinancing, there is no certainty that this will occur, and, if the Company fails to secure additional capital or otherwise restructure its business, in order to address its cash requirements, it may not have adequate liquidity to fund its operations and meet its obligations.The September 31, 2014 financial statements and Management Discussion and Analysis have been filed on SEDAR. Net loss for the third quarter was $1,239,921 as compared to a net loss of $1,684,385 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 $306,012. At the mine level operations produced a gross profit (excluding non-cash items) of $1,064,257. During the third quarter 607,710 tonnes of ore were mined containing approximately 7,565 ounces of gold. The mine produced 4,743 gold ounces in the quarter.
Gold production in the current quarter has been negatively impacted by the historic rainfall received in the Pacific northwest area during the fall of 2014. The mine site received in excess of 400mm of rainfall which exceeds levels normally achieved over a full calendar year. The impact of the rains included the significant dilution of gold leach solutions which limited the amount of gold that could be recovered in the Lluvia de Oro processing facility. As a result of the rainfall, some of the Company's primary sources of gold mineralization were and remain inaccessible for mining operations. The Company's operating team has performed exceptionally to try and minimize the impact to the project.
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.
Contact
NWM Mining Corp.
(416) 364-6799.