Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 70

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 70
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                                            (US$5,178,747). These payments have been made.

●$35,972,500
                                            (US$25,000,000) payable upon the earlier of: (a) approval by the Botswana Ministry of Mineral
                                            Resources, Green Technology and Energy Security (“MMRGTES”) of the Company’s
                                            Section 42 and Section 43 applications (for the further extension of the mining licence and
                                            conversion of the mining licence into an operating licence, respectively), and (b) on the
                                            expiry date of the study phase, January 31, 2026, which pursuant to the Selebi APA has been
                                            extended for one year from the original expiry date of January 31, 2025. This extension follows
                                            successful completion by the Company of the work and investment milestones required by the
                                            Selebi APA.

●$43,167,000
                                            (US$30,000,000) payable on the completion of mine construction and production start-up (commissioning)
                                            by the Company on or before January 31, 2030, but not later than four years after the approval
                                            by the Minister of MMRGTES of the Company’s Section 42 and Section 43 applications.

    F-16

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

The
total acquisition cost of the Selebi Mines included the first instalment of $2,086,830 (US$1,750,000) and the payment of the care and
maintenance funding contribution of $6,164,688 (US$5,178,747). As per the terms and conditions of the Selebi APA, the Company has the
option to cancel the second and third payments and return the Selebi Mines to the liquidator if the Company determines that the Selebi
Mines are not economical. The Company also has an option to pay in advance the second and third payments if the Company determines that
the Selebi Mines are economical.

In
addition to the Selebi APA, the purchase of the Selebi Mines 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 “Selebi NSR”) of 2% on the net value of sales
of concentrate or other materials