Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 9

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 9
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 does not provide for a purchase price or initial payment for the purchase of the assets. The acquisition cost of the Selkirk
Mine of $327,109 (US$244,954) was the care and maintenance funding contribution from April 1, 2021, to the closing date of the Selkirk
APA. The Selkirk APA provides that if the Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment
of $34,107,500 (US$25,000,000) would be 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 $40,929,000 (US$30,000,000), if the Selkirk Mine were to be commissioned earlier
than the Selebi Mines, the payment would trigger on the Selkirk Mine’s commission date. The Selkirk APA provides for a three-year
study phase expiring August 17, 2025, which can be extended for one year with written notice to the liquidator. The Company has submitted
the written notice and, as of August 13, 2025, is awaiting formal acceptance by the liquidator.

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 a net smelter returns royalty (the “Selkirk NSR”) of 1% on the net value of sales of
concentrate or other materials with respect to production from the Selkirk mining licence, which the Company has the right to buy-back
in full (Note 9). The contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.

In
August 2023, the Company 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 shaft. The agreement has since lapsed and on August 11, 2025, the Company informed
the liquidator of BCL that it would no longer be pursuing the acquisition