Gold Mountain Mining Corp Announces Debt Settlements, Share Issuance, and Private Placement

Gold Mountain Mining Corp (Gold Mountain) disclosed agreements for the settlement and postponement of certain secured debts with Nhwelmen Construction LP Ltd. and Hedge Minerals Corp, alongside a private placement offering aimed at raising up to $750,000. These steps are part of broader financial restructuring efforts by the Vancouver-based company, which operates the Elk Gold Mine.

Nhwelmen will receive common shares worth $1,250,000 at $0.0075 each, reducing their secured debt, with the balance repayable over 24 months including an 18% annual interest. Similarly, Hedge's entire secured debt will be converted into common shares at the same price. Additionally, Gold Mountain plans to convert up to $1.5 million of its unsecured debt into common shares, potentially issuing up to 200 million shares.

The private placement of 100 million shares at $0.0075 each targets gross proceeds of $750,000, which will fund operations at the Elk Gold Mine and provide working capital. The issuance of these shares, subject to a four-month hold period, requires final Toronto Stock Exchange approval.

The company emphasized that the debt settlements would significantly alter its ownership structure, with Hedge and Nhwelmen's stakes increasing substantially, categorizing them as insiders. It aims at improving the financial stance through these measures, invoking a 'financial hardship' exemption for the settlement process.

Gold Mountain underlined its financial difficulties and the absence of viable alternatives as the rationale behind these decisions. The restructuring, led by a Special Committee, is expected to offer the company a pathway to sustainability and growth.