Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 90

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 90
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price of $1.75 per Common Share until February 24, 2025. The fair value of the Broker Warrants was estimated at $167,939 using the Black-Scholes
Option Pricing Model. Legal fees related to the February 2023 Financing of $133,164 were also recorded as a share issuance cost. 

On
June 28, 2023, the Company issued 14,772,000 units at a price of $1.10 per unit to EdgePoint for aggregate gross proceeds of $16,249,200
upon the closing of the 2023 Financing Transactions (Note 9). Each unit comprises one Common
Share and 22.5% of one whole Common Share purchase warrant (each a “Transferable Warrant” and together, the “Transferable
Warrants”). The total whole number of Transferable Warrants issuable in the Equity Financing is 3,324,000. Each Transferable
Warrant may be exercised by the holder to purchase one Common Share at an exercise price of $1.4375 per Common Share for a period of
three years. The fair value of the Transferable Warrants was estimated at $1,898,349 using a proportionate allocation method based on
the relative fair value of each component of the unit (Common Shares and warrants). The fair value of the warrants is calculated using
the Black-Scholes Option Pricing Model.

Fort
Capital Partners acted as financial advisor to the Company on the equity portion of the 2023 Financing Transactions and was paid cash
fees of $812,460. Legal fees related to the 2023 Financing Transactions totaled $736,067, of which $240,596 was recorded as share issuance
cost.

The
fair value of the Transferable Warrants in connection with the February 2023 Financing and the 2023 Financing Transactions were calculated
using the following assumptions:

SCHEDULE
OF FAIR VALUE OF WARRANTS IN CONNECTION WITH FINANCING TRANSACTIONS

    February 24, 2023  
    June 28, 2023 
  
    Expected dividend yield 
     0% 
     0%
  
    Share price 
    $1.73  
    $1.35 
  
    Expected share price volatility 
     77.52% 
     92.06%
  
    Risk free interest rate 
     4.28% 
     4.13%
  
    Expected life of warrant