TSX Venture Exchange
Symbol: NWM
TORONTO, Dec. 17, 2014 /CNW/ - NWM Mining
Corporation ("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.
SOURCE NWM Mining Corporation