Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 314

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 314
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 the NSR.

Selkirk
Mine

In
regard to the Selkirk Mine, the purchase agreement does not provide for a purchase price or initial payment for the purchase of the assets.
The Selkirk purchase agreement provides that if the Company elects to develop Selkirk first, the payment of the second Selebi instalment
of US$25 million would be due upon the approval by the Minister of MMRGTES of the Company’s Section 42 and Section 43 applications
(for the further extension of the Selkirk mining licence and conversion of the Selkirk mining licence into an operating licence, respectively).
For the third Selebi instalment of US$30 million, if Selkirk were commissioned earlier than Selebi, the payment would trigger on Selkirk’s
commission date.

In
addition to the Selkirk APA, the purchase of the Selkirk Mine is also subject to a royalty agreement as well as a contingent consideration
agreement with the liquidator. The royalty agreement consists of an NSR of 1% on the net value of sales of concentrate or other materials
with respect to production from the Selkirk mining licence, of which the Company has the right to buy-back in full. The contingent consideration
agreement is on similar terms as the Selebi Mines contingent consideration.

NSR
Option

The
Company received $2,750,000 (the “Option Payment”) from Cymbria for their right to participate in the Company’s
right to repurchase one-half of the Selebi NSR and the entirety of the Selkirk NSR. Cymbria has the right to put its options back to
the Company in certain circumstances in return for the reimbursement of the applicable portion of the Option Payment. Cymbria also has
the right to compel the Company to repurchase the applicable portion of its NSR from the relevant liquidator.

-30-

Term
Loan

The
Company had an outstanding Term Loan at December 31, 2024, in the amount of $20,882,353 that bore interest at a rate of 10% per
annum payable quarterly in arrears, with the principal maturing on June 28, 2026. The Term Loan was subject to certain covenants and
provisions on events of default, repayments and mandatory prepayments, including: (i) increase in the interest rate payable on the
Term Loan to 15% per annum upon the occurrence