Gold Mountain Raises $6.5 Million through Convertible Debenture

Gold Mountain Mining Corp. (TSX:GMTN) announced the issuance of a $6.5 million convertible secured debenture to a Nlaka'pamux LP affiliate, allowing conversion into 81,250,000 common shares at $0.08 per share. The debenture matures in ten years with a 10% annual interest rate. The security package will mirror an existing agreement with Nhwelmen Construction GP Ltd., an existing insider of the company.

Upon full conversion, the transaction will result in the issuance of 81,250,000 common shares, equivalent to 10.24% of the company's pre-transaction shares. Nhwelmen currently holds 216,666,667 shares or 27.30% and upon conversion, this will rise to 34.05%.

The Special Committee of the board, formed by independent directors, reviewed and endorsed the transaction as a financial hardship solution under MI 61-101, deeming it reasonable. The agreement is pending TSX approval and will require disinterested shareholder support representing over 50% of the company's voting shares.