Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 73

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 73
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financing efforts will be successful or if the Company will attain a profitable level of operations. These material uncertainties cast
substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited condensed interim consolidated
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification
of liabilities, and the reported expenses and comprehensive loss that might be necessary should the Company be unable to continue as
a going concern. These adjustments could be material. In assessing whether a going concern assumption is appropriate, management considers
all available information about the future, which is at least, but not limited to, twelve months from the date of this Report.

Contractual
Obligations and Contingencies

As
of September 30, 2025, the Company had commitments for capital expenditures over the next 12 months of $156,650 and the following other
contractual obligations and commitments:

Selebi
Mines

As
per the Selebi APA, the following milestone payments remain outstanding:

    ●
    US$25,000,000
    payable upon the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications (for the further extension
    of the mining license and amendment of mining programme, respectively) which are to be submitted in March 2026 and require a compliant
    economic study. The Company is planning to prepay this amount prior to the end of 2025.

    ●
    US$30,000,000 payable on the completion of mine construction and production start-up (commissioning) by the
    Company, but not later than four years after the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications.

40

As
per the terms and conditions of the Selebi APA, the Company has the option to cancel the payments and return the Selebi Mines to the
liquidator if the Company determines that the Selebi Mines are not economical. The Company also has an option to make the payments
in advance if the Company determines that the Selebi Mines are economical. As of September 30, 2025, none of the
conditions of the remaining milestone payments have been met, hence these amounts are not accrued in the Financial
Statements.

In
addition to the Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent consideration
agreement with the liquidator. The