Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 17

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 17
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 $19,142,687 was recognized as a loss in the current period.

    17

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and six months ended June 30, 2025 and 2024

(Expressed in Canadian dollars)

The
Monte Carlo model used to value the Settlement Warrants was based on the following assumptions:

SCHEDULE
OF FAIR VALUE OF SETTLEMENT WARRANTS

    Settlement Warrants 
  
    Expected dividend yield 
     0%
  
    Share price 
    $5.00 
  
    Expected share price volatility 
     81.8%
  
    Risk free interest rate 
     2.57%
  
    Expected life of warrant 
     3
                                            years 

The
volatility was determined by calculating the historical volatility of the Company’s share price over a 3-year period using daily
closing prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns. The same implied
discount for lack of marketability for purposes of the Common Shares valuation was also applied to the share price for the Settlement
Warrants valuation.

In
connection with the March 2025 Financing, the Company issued: (i) 200,000 Common Shares to TriView Capital Ltd. (“TriView”)
for its services as finder; (ii) 450,000 Common Shares to Fiore Management and Advisory Corp. (“Fiore”) and 187,500
Common Shares to Bowering Projects Ltd. (“Bowering”) for certain advisory services; and (iii) 179,335 Common Shares
to a financial advisor for financial advisory services. The fair value of these shares was determined to be $5,179,586. In addition to
the Common Shares, the Company incurred various legal, listing and financing fees payable in cash totalling $2,371,203. Certain of these
fees were allocated between the non-brokered private placement (Note 10(a)) and Debt Conversion transactions based on the value of the
units issued under each transaction.

All
securities issued as part of the Debt Conversion are subject to a hold period which expired July 19, 2025, with the exception of the Common
Shares issued to Fiore and Bowering which have a hold period expiring March 19, 2026.

The
following is a continuity of the Term Loan:

SCHEDULE
OF CONTINUITY OF TERM LOAN