Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 82

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 82
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amount of the Term Loan by $5,882,353 (the “Additional Principal Amount”) from $15,000,000 to $20,882,353. The Additional
Principal Amount was subject to an original issue discount of approximately 15% and was advanced by the lender to the Company as a single
advance of $5,000,000. The Additional Principal Amount formed a part of the Term Loan and was on the same terms and conditions applicable
to the Term Loan, including the same maturity date of June 28, 2026. As consideration for entering into the amended Term Loan, the Company
issued an additional 700,000 non-transferable Common Share purchase warrants (the “Additional Warrants”) to the lender,
with each Additional Warrant entitling the lender to acquire one Common Share at a price of $1.4375 per Common Share until June 28, 2026.

The
Company evaluated the amendment of the Term Loan and determined that it qualified as a non-substantial modification under ASC 470
- Debt. Therefore, a new effective interest rate was determined based on the carrying amount of the original debt instrument, adjusted
for the fair value of the Additional Warrants resulting from the modification, and the revised cash flows.

The
fair value of the Non-Transferable Warrants and Additional Warrants was estimated at $1,435,350 and $275,961 respectively, using the
Black-Scholes Option Pricing Model. At initial closing, the accounting was based on relative fair value under ASC 470 - Debt,
with proceeds and transaction costs allocated between the Term Loan and the Non-Transferrable Warrants. The Non-Transferrable Warrants
were allocated $1,352,054, including $83,296 in transaction costs. The Additional Warrants were accounted for as transaction costs for
obtaining the Additional Principal Amount. As such, $1,352,054 and $275,961 respectively were recorded in equity.

The
fair value of the Non-Transferable Warrants and Additional Warrants was calculated using the following assumptions:

SCHEDULE
OF FAIR VALUE OF NON-TRANSFERABLE AND ADDITIONAL WARRANTS

    Non-Transferable Warrants  
    Additional Warrants 
  
    Expected dividend yield 
     0% 
     0%
  
    Share price 
    $1.35  
    $1.14 
  
    Expected share price volatility 
     92.06%