Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 361

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 361
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issory Note to March 22, 2023.

On
March 17, 2023, the Company entered into an amended and restated Promissory Note (the “A&R Promissory Note”) extending
the maturity of the Promissory Note from March 22, 2023 to November 24, 2023 (the “Extension”). All other terms of
the Promissory Note remained the same. In connection with the Extension and entering into of the A&R Promissory Note, the Company
agreed to pay an amendment and restatement fee of $225,000 and issued 350,000 non-transferable Common Share purchase warrants to the
Lender (the “Lender Warrants”). Each Lender Warrant was exercisable to acquire one Common Share of the Company at
a price of $1.75 per Common Share for a period of one year from the date of the A&R Promissory Note. In connection with the Extension
and issuance of the Lender Warrants, the 119,229 Common Share purchase warrants previously issued to the Lender in connection with the
initial issuance of the Promissory Note were cancelled concurrently with the Extension.

In
connection with the A&R Promissory Note, interest and accretion expense of $nil was recorded for the year ended December 31, 2024
(2023 - $682,547).

The
fair value of the liability of the Lender Warrants was estimated at $116,177 using the Black-Scholes Option Pricing Model. The fair value
of the Lender Warrants and the amendment and restatement fee of $225,000 was added to the liability of the A&R Promissory Note and
amortized over the remaining life of the A&R Promissory Note. 

The
fair value of the Lender warrants was calculated using the following assumptions:

SCHEDULE
OF LENDER WARRANTS

    March 17, 2023 
  
    Expected dividend yield 
     0%
  
    Share price 
    $1.40 
  
    Expected share price volatility 
     77.2%
  
    Risk free interest rate 
     3.49%
  
    Expected life of warrant 
     1 year 

The
volatility was determined by calculating the historical volatility of share prices of the Company over one year using daily closing prices.
The formula used to compute historical volatility is the standard deviation of the logarithmic returns.