Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 201

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 201
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stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the
commencement of production. Interest expense allocable to the cost of developing mining properties and to construct new facilities is
capitalized until assets are ready for their intended use.

To
date, the Company has not established the commercial feasibility of any exploration prospects; therefore, all exploration and evaluation
costs are being expensed.

ASC
930-805 - Extractive Activities-Mining: Business Combinations states that mineral rights consist of the legal right to explore, extract,
and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights which are considered tangible
assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date.
As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated
with acquiring patented and unpatented mining claims.

    F-11

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

 (i) Impairment of long-lived assets

Long-lived
assets, including exploration and evaluation assets and property, plant and equipment, are subject to impairment tests whenever events
or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances that could trigger a review include,
but are not limited to: significant decreases in the market price of the assets; significant adverse changes in the business climate
or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction
of the assets; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated
with the use of the assets; and current expectation that the assets will more likely than not be sold or significantly disposed of before
the end of their estimated useful life.

When
indicators of potential impairment are present, the Company prepares a projected undiscounted cash flow analysis for the respective asset
or asset group. If the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, an impairment
loss is recognized equal to the excess of the carrying value over the fair value. Fair value can be determined using a market approach,
income approach or cost approach. Recognized impairment losses are not reversed.

Based
on the Company’s evaluation,