Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 313

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 313
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 Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent
consideration agreement with the BCL Liquidator. The royalty agreement consists of a net smelter royalty (“NSR”)
of 2% on the net value of sales of concentrate or other materials with respect to production from the Selebi mining licence, of
which the Company has the right to buy-back 50%. 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.

-29-

Both
the Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and
3% of all base metals sales.

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