Gold Mountain Announces Debt Settlement and Convertible Debenture Issuance

Gold Mountain Mining Corp. has closed its debt settlement transactions with Nhwelmen Construction Limited Partnership. The company settled $6.5 million in secured debt by issuing 50,000,000 common shares at $0.03 per share and a $5 million convertible debenture. The debenture, maturing in four years, is convertible into 62,500,000 common shares at $0.08 per share, with 12% annual interest.

Additionally, Gold Mountain settled $1,700,660 of unsecured debt with various vendors by issuing 56,688,667 common shares at $0.03 per share. In total, assuming full conversion, 169,188,667 new shares could be issued.

The transactions were negotiated at arm's length, requiring approval from the Toronto Stock Exchange.

Nhwelmen, already holding 166,666,667 shares, could control up to 35.18% of Gold Mountain's shares after the debenture conversion.