Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 44

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 44
---
 and vehicle financing - The fair values approximate carrying values as the interest rates are comparable to current market
rates.

DSU
liability - the fair value of the DSUs is measured using the closing price of the Company’s Common Shares at the end of each reporting
period.

Term
Loan – the Term Loan is carried at amortized cost. The fair value measurement of the Term Loan was based on an income approach.

NSR
option liability – The fair value of the NSR options is determined using a valuation model that incorporates such factors as discounted
cash flow projections, metal price volatility, and risk-free interest rate. As the NSR options are exercisable entirely at the discretion
of Cymbria and the underlying projects are in the exploration stage, the fair value of the call and put on the options as at December
31, 2024 and December 31, 2023 is nil.

The
carrying value of cash and cash equivalents, trade payables and accrued liabilities approximate their fair value due to their short-term
nature.

-33-

Accounting
Developments

For
a discussion of Recently Adopted and Recently Issued Accounting Pronouncements, refer to Note 2 of the Consolidated Financial Statements.

Critical
Accounting Estimates

The
preparation of the Consolidated Financial Statements in conformity with US GAAP requires management to make assumptions and estimates
that can affect reported amounts of assets, liabilities, revenue and expenses and the accompanying disclosures. Estimates are continuously
evaluated and are based on management’s historical experience and on other assumptions believed to be reasonable under the circumstances.
However, different estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

The
areas involving a higher degree of complexity or significant management judgement, or areas where estimates are significant to the consolidated
financial statements are:

(a)Recoverability
                                            of exploration and evaluation assets

The
ultimate recoverability of the exploration and evaluation assets is dependent upon the Company’s ability to obtain the necessary
financing to complete the exploration and development and commence profitable production at its projects, or alternatively, upon the
Company’s ability to dispose of its interests therein on an advantageous basis. A review of the indicators of potential impairment
is at minimum carried out at each reporting period.

Management
undertakes a periodic review of these assets to determine whether any indication of impairment exists. Where an indicator of impairment
exists, a formal estimate of the recoverable amount of the assets is made.