NWM Mining extends maturity date of its $18.5 million debt facility

Facility extended by over one year to September 2014 from June 2013

By Devika Patel

Knoxville, Tenn., June 17 - NWM Mining Corp. extended the maturity date of its $18.5 million debt facility on June 14, according to a press release.

The facility will now mature in September 2014, extended from June 2013. The interest rate has also been reduced to 12.5% from 15%. The revised interest rate has the potential to reduce interest payments over the period by about $500,000.

In addition, the company's lender, Global Resource Fund, has also agreed to discuss a term facility concerning an update of gold resources and reserves for the a 5,000 meter drill program at Lluvia de Oro, which is planned for late summer 2013.

In consideration for the debt facility extension, Global will receive $75,000 and a number of shares, which will bring the investor's interest in the company to 10%. Global currently holds about 5.5% of the company's outstanding shares. Once all conditions have been satisfied and the full extension is in place, Global will receive an additional $75,000 and a number of shares which will bring its interest to 20%.

Based in Toronto, NWM Mining develops and explores gold properties.

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