White Mountain Titanium Corp. (OTCBB:WMTM) announced that it has entered into a loan agreement with new accredited investor, Nexo WMTM Holdings, LLC for a private placement of 7% senior convertible promissory note for gross proceeds of $2,000,000 on March 16, 2016. The company also issued 8,333,333 warrants exercisable at $0.3 per share until March 16, 2019.

The note is unsecured, will mature on March 16, 2018, and bears interest at a fixed rate of 7% per annum. In the event of default, the interest on the note will increase to 25% per annum. The note is convertible into 16,666,667 series A preferred share of the company at a fixed conversion price of $0.12 per share.

The note can be prepaid by the company at any time upon a 30 days' notice. The company will issue securities pursuant to exemption provided under Regulation D. The company also issued 100 series A preferred shares as consideration shares. Each party shall pay their own fees and expenses in connection with this transaction.