Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 62

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 62
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 have been translated into Canadian dollars at the average
rate over the reporting period. Exchange differences are charged or credited to other comprehensive loss and recognised in the currency
translation reserve in equity. On disposal of a foreign operation, the related cumulative translation differences recognised in equity
are reclassified to profit or loss and are recognised as part of the gain or loss on disposal.

 (g) Cash and Cash Equivalents

Cash
and cash equivalents include all highly-liquid investments with an original maturity of three months or less. The Company minimizes its
credit risk by investing its cash and cash equivalents with major Canadian and international banks and financial institutions with a
minimum long-term credit rating of A, as defined by Standard & Poor’s. The Company’s management believes that no concentration
of credit risk exists with respect to the investment of its cash and cash equivalents.

 (h) Exploration and evaluation assets

Costs
of leasing, exploration, evaluation, carrying and retaining unproven mineral properties are expensed as incurred. If the Company identifies
proven and probable reserves in its investigation of a property and upon the establishment of commercial feasibility, the property would
enter the development stage and future costs would be capitalized until production is established. When a property reaches the production
stage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the
commencement of production. Interest expense allocable to the cost of developing mining properties and to construct new facilities is
capitalized until assets are ready for their intended use.

To
date, the Company has not established the commercial feasibility of any exploration prospects; therefore, all exploration and evaluation
costs are being expensed.

ASC
930-805 - Extractive Activities-Mining: Business Combinations states that mineral rights consist of the legal right to explore, extract,
and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights which are considered tangible
assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date.
As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated
with acquiring patented and unpatented mining claims.

    F-11

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

 (i) Impairment of long-lived assets

Long-lived
assets