Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 202

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 202
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 no impairment has been recorded on the unproven mining properties for the year ended December 31,
2024.

 (j) Leases

At
commencement of a contract, the Company assesses whether a contract is, or contains, a lease by determining whether the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. A right-of-use (the “ROU”)
asset and lease liability are recognized at the lease commencement date. The lease liability is initially measured at the present value
of all future lease payments that have not been paid as of the commencement date of the lease, discounted using the Company’s incremental
borrowing rate, unless the rate implicit in the lease is readily determinable. The ROU asset is initially measured at cost, which is
calculated as the initial amount of the lease liability, with an adjustment for any initial direct costs incurred, plus adjustments for
any lease payments made in advance of the commencement date, and less any lease incentives received.

ASC
842 requires a lessee to classify a lease as either a finance or operating lease. Interest and amortization expense are recognized for
finance leases while only a single lease expense is recognized for operating leases, typically on a straight-line basis.

ROU
assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.
The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is remeasured when there is a change in future lease payments, when there is a change in the Company’s estimate
of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise
a purchase, extension or termination option. These adjustments are recorded through profit or loss.

 (k) Property, plant and equipment

Property,
Plant and Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses.

Subsequent
costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of a significant replaced part is derecognized. All other repairs and maintenance are charged to net loss during the financial
period in which they are incurred. Gains and losses on disposals are determined by comparing