Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 38

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 38
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Phikwe
South and the Southeast Extension

In August 2023, the Company
announced that it had entered into a binding commitment letter with the BCL Liquidator to acquire a 100% interest in two additional
deposits, Phikwe South and the Southeast Extension, located adjacent to and immediately north of the Selebi North historical workings.
The acquisition of the Phikwe South and the Southeast Extension deposits is subject to customary closing conditions and has not yet closed
as of March 19, 2025.

The
upfront cost to the Company to acquire these additional mineral properties is US$1,000,000. In addition, the Company has agreed to
additional work commitments of US$5,000,000 in the aggregate over four years. As a result of the extension of the Selebi mining
licence, the remaining asset purchase obligations of the Company outlined in the Selebi APA will each increase by 10%, US$5,500,000
in total, while the trigger events remain unchanged. The existing 2% NSR and contingent consideration agreement held by the BCL
Liquidator with respect to production from the Selebi mining licence will also apply to production from these additional deposits,
subject to the Company’s existing buy-back right for 50% of the NSR.

Selkirk
Mine

In
regard to the Selkirk Mine, the purchase agreement does not provide for a purchase price or initial payment for the purchase of the assets.
The Selkirk purchase agreement provides that if the Company elects to develop Selkirk first, the payment of the second Selebi instalment
of US$25 million would be due 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 US$30 million, if Selkirk were commissioned earlier than Selebi, the payment would trigger on Selkirk’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 an NSR of 1% on the net value of sales of concentrate or other materials
with respect to production from the Selkirk mining licence, of which the