Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 59

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 59
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 at the beginning of the period 
     6,105,933  
     19,245,628 
  
    Cash and cash equivalents at the end of the period 
     45,466,839  
     9,366,821 

Operating Activities

Net cash used in operating activities for the three
months ended March 31, 2025, decreased by $2,190,985 compared to the prior year comparable period resulting from: (i) a reduction in general
exploration expenses as the Company put drilling activities on hold mid-February 2025 through to the end of the quarter to conserve cash;
(ii) positive changes in non-cash working capital resulting from an increase in trade payables as the Company deferred certain payments
as part of cash conservation measures; and (iii) lower interest payments on the Term Loan.

Investing Activities

Key investing activities relate to the acquisition
of property, plant and equipment. Net cash used in investing activities for the three months ended March 31, 2025 decreased by $1,001,869
compared to the prior  comparable period. The higher spending in the 2024 comparable period primarily relates to the acquisition of
capital spares and critical spares for existing equipment on-site.

Financing Activities

Net cash provided by financing activities for the
three months ended March 31, 2025 increased by $45,922,707 compared to the prior year comparable period. During the current period, the
Company closed a Private Placement for gross proceeds of $46,000,000 (see “Liquidity
& Capital Resources - Financings”). The Company did not execute any financing transactions during the prior year comparable
period.

Liquidity & Capital Resources

The Company, being in the exploration and evaluation
stage, is subject to risks and challenges similar to companies in a comparable stage of exploration and evaluation. These risks include
the challenges of securing adequate capital for exploration and advancement of the Company’s material projects, operational risks
inherent in the mining industry, and global economic and metal price volatility. There is no assurance management will be successful in
its endeavors.

The properties in which the Company currently has
an interest are in the pre-revenue stage. Operating cash outflows are highly dependent upon the exploration and evaluation programs taking
place at that time. As such, the Company is dependent on external financing to fund its activities and the advancement of its projects.
In order to carry out the planned project advancement and