Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 71

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 71
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 with respect to production from the Selebi mining licence, of which the Company has the right to
buy-back 50% (Note 10). The contingent consideration agreement consists of two components: (i) a sliding scale payment of
US$0.50/tonne of ore up to US$1.40/tonne of ore with respect to the discovery of new mineable deposits greater than 25 million
tonnes of ore and; (ii) price participation of 15% on post-tax net earnings directly attributable to an increase of 25% or more in
commodity prices, on a quarterly basis, for a period of seven years from the date of first shipment of concentrate or other
materials.

The
Company also negotiated a separate asset purchase agreement (the “Selkirk APA”) with the liquidator of Tati Nickel
Mining Company (“TNMC”) in January 2022 to acquire the Selkirk deposit and related infrastructure formerly operated
by TNMC. The transaction closed in August 2022.

The
Selkirk APA does not provide for a purchase price or initial payment for the purchase of the assets. The acquisition cost of the Selkirk
Mine of $327,109 (US$244,954) was the care and maintenance funding contribution from April 1, 2021 to the closing date of the Selkirk
APA. The Selkirk APA provides that if the Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment
of $35,972,500 (US$25,000,000) would be upon the approval by the Minister of MMRGTES of the Company’s Section 42 and Section 43
applications (for the further extension of the Selkirk mining licence and conversion of the Selkirk mining licence into an operating
licence, respectively). For the third Selebi instalment of $43,167,000 (US$30,000,000), if the Selkirk Mine were to be commissioned
earlier than the Selebi Mines, the payment would trigger on the Selkirk Mine’s commission date.

In
addition to the Selkirk APA, the purchase of the Selkirk Mine is also subject to a royalty agreement as well as a contingent consideration
agreement with the liquidator. The royalty agreement consists of a net smelter returns royalty (the “Selkirk NSR”) of 1% on the net value of sales of