Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 220

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 220
---
500,000 and in an integral multiple of $100,000, together with all accrued
                                            and unpaid interest on the principal amount being repaid; and

●mandatory
                                            prepayment was to be made when the Company had non-ordinary course asset sales or other dispositions
                                            of property or the Company received cash from the issuance of indebtedness for borrowed money.

As
at December 31, 2024, the Company was in compliance with the Term Loan covenants.

    F-20

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

In
connection with the Term Loan, the Company issued an aggregate of 2,000,000, non-transferable Common Share purchase warrants (the “Non-Transferable
Warrants”) to Cymbria. Each Non-Transferable Warrant is exercisable by Cymbria to purchase one Common Share at a cash purchase
price of $1.4375 per Common Share until June 28, 2026.

Further,
on December 14, 2023, the Company and Cymbria closed an amendment to the terms of the existing Term Loan, increasing the principal
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