Gold Mountain Mining Corp. Obtains Additional Funding Under Secured Convertible Debenture

Rhea-AI Summary

Gold Mountain Mining (OTCQB:GMTNF) has secured an additional $600,000 in funding through an amended and restated secured convertible debenture with Nhwelmen Construction Limited Partnership, their Elk Gold Mine contract miner. The amendment increases the total principal amount from $5,000,000 to $5,600,000.

The debenture maintains its original terms, including a $0.08 per share conversion price, June 18, 2028 maturity, and 12.0% annual interest rate. If fully converted, it would result in 70,000,000 common shares being issued. The funding is secured by a second priority security interest over all company assets and requires Toronto Stock Exchange approval.

Positive

• None.

Negative

• High interest rate of 12.0% per annum on the debenture
• Potential significant dilution with 70M shares if fully converted at $0.08/share
• Requires additional security interest over company assets

VANCOUVER, BC / ACCESS Newswire / July 11, 2025 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is pleased to announce that it has obtained an additional $600,000 in funding (the "Additional Funding") pursuant to an amended and restated secured convertible debenture (the "Amended Debenture") dated as of July 11, 2025. The Amended Debenture amends and restates the terms of a secured convertible debenture (the "Original Debenture") dated as of June 18, 2024 that the Company issued to Nhwelmen Construction Limited Partnership ("Nhwelmen" the contract miner at the Company's Elk Gold Mine), pursuant to which the Company owes Nhwelmen $5,000,000 (see the Company's news release dated June 18, 2024 for further details respecting the Original Debenture).

The Amended Debenture amends the terms of the Original Debenture to increase the aggregate principal amount owing by the Company to Nhwelmen from $5,000,000 to $5,600,000. All other terms of the Original Debenture remain the same, including: the Amended Debenture is convertible at Nhwelmen's option into common shares of the Company at a conversion price of $0.08 per share (with an aggregate of 70,000,000 common shares being issuable if the full $5,600,000 is converted); the Amended Debenture matures on June 18, 2028; the principal amount of the Amended Debenture accrues interest at the rate of 12.0% per annum, calculated monthly and payable in cash in arrears on each anniversary date from the date of issuance of the Original Debenture; and the Amended Debenture may be prepaid in whole or in part, at the option of the Company. The Amended Debenture is secured by a second priority security interest over all of the assets of the Company including its current and after acquired property, as evidenced by the general security agreement dated effective March 10, 2024 between the Company and Nhwelmen.

The Company will use the Additional Funding for general working capital, which will provide the Company with financial flexibility to support its ongoing operations and strategic initiatives.

The Additional Funding remains subject to approval of the Toronto Stock Exchange. There can be no assurance that the financing will be completed on the terms contemplated or at all. The Company will provide further updates as appropriate.

About Gold Mountain

Gold Mountain is a British Columbia based gold and silver production, exploration and development company focused on the development of the Elk Gold Mine, a producing mine located 57 kilometers from Merritt in South Central British Columbia. Additional information is available at www.sedarplus.ca or on the Company's new website at www.goldmountainminingcorp.ca.

For more information, please contact:

Gold Mountain Mining Corp.
Email: info@goldmountainminingcorp.ca
Website:www.goldmountainminingcorp.ca

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Forward Looking Statements

Forward-looking statements in this news release may include, but are not limited to, statements relating to those in respect of the Company's future financial reporting. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

SOURCE: Gold Mountain Mining Corp

View the original press release on ACCESS Newswire

FAQ

What is the total amount of Gold Mountain Mining's (GMTNF) amended convertible debenture?

The amended convertible debenture totals $5.6 million, following an increase of $600,000 from the original $5 million debenture.

What are the key terms of GMTNF's convertible debenture with Nhwelmen?

The debenture has a conversion price of $0.08 per share, matures on June 18, 2028, and carries a 12.0% annual interest rate payable in cash annually.

How many shares could be issued if GMTNF's convertible debenture is fully converted?

If the full $5.6 million debenture is converted at $0.08 per share, 70,000,000 common shares would be issued.

What will Gold Mountain Mining use the additional $600,000 funding for?

The additional funding will be used for general working capital to support ongoing operations and strategic initiatives.

What security is provided for Gold Mountain Mining's convertible debenture?

The debenture is secured by a second priority security interest over all of the company's assets, including current and after-acquired property.