Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 102

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 102
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 million tonnes of ore from a base case of 15.9 million tonnes,
with a minimum grade of 2.5% nickel equivalent, accrued at the time of a decision to mine; (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.

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 liquidator of BCL 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 May 13, 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 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.

40

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