Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 307

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 307
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 of those funds to repay a $7.0 million promissory note from Pinnacle Island LP. During 2024, the Company closed private placements
for gross proceeds of approximately $27.5 million.

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,
and there is no assurance management will be successful in its endeavors.

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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 cover administrative costs,
the Company will need to use its existing working capital and raise additional amounts as needed.

As
at December 31, 2024, the Company had $6,105,933 in available cash (December 31, 2023 – $19,245,628), with no sources of operating
cash flows, and no significant credit lines in place. As at December 31, 2024, the Company had working capital (calculated as total current
assets less total current liabilities) of $2,963,061 (December 31, 2023 – $14,787,484). The decrease in working capital is mainly
due to lower cash balances in support of exploration and evaluation activities.

Financings

On March 18,
2025, the Company closed a significant refinancing and the deleveraging of its balance sheet with the conversion
of the Term Loan into equity (the “Debt Conversion”).

The
Company completed a private placement financing issuing 153,333,334 units of the Company at a price of $0.30 per unit for aggregate gross
proceeds of approximately $46 million (the “March 2025 Private Placement”). Each unit
consists of one Common Share and one-half of one warrant. Each warrant entitles the holder to acquire one additional Common Share at
a price of $0.55 per share until March 18, 2028. In addition, the Company issued 4,000,000