Gold Mountain Announces Further Debt Settlements and Issuance of Convertible Debenture

Vancouver-based Gold Mountain Mining Corp. (TSX:GMTN)(OTCQB:GMTNF)(FRA:5XFA) has announced an agreement to settle the secured debt of $6.5 million owed to Nhwelmen Construction Limited Partnership. Nhwelmen will receive 50,000,000 common shares for $1.5 million of this debt and a $5 million convertible debenture for the remaining amount.

The debenture, which carries an annual interest rate of 12%, matures in four years and is convertible into 62,500,000 shares at $0.08 per share. This arrangement requires Toronto Stock Exchange approval, along with written consent from more than 50% of disinterested shareholders.

The company will also approach unsecured vendors to convert $1,700,660 of unsecured debt into common shares at $0.03 per share. These transactions aim to improve Gold Mountain's financial position and provide operating capital.