Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 26

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 26
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urchase one-half of the Selebi NSR at a future time on payment by PNRP to the liquidator of $28,752,000 (US$20,000,000).

PREM’s indirect wholly-owned subsidiary
Premium Nickel Group Proprietary Limited (“PNGP”) acquired the Selkirk Mine in August 2022 out of liquidation. Pursuant
to the acquisition agreement, the liquidator retained a 1% net smelter returns royalty on the Selkirk Mine. PNGP has a contractual right
to repurchase the entirety of the Selkirk NSR at a future time on payment by PNGP to the liquidator of $2,875,200 (US$2,000,000).

Each of PNRP and PNGP has agreed to grant Cymbria,
in exchange for the Option Payment, an option to participate in any such repurchase of the applicable portion of its NSR from the relevant
liquidator. Cymbria will, following the exercise of its option to participate in any such repurchase, acquire a 0.5% NSR royalty on the
applicable property by paying an amount equal to one half of the repurchase price payable by PNRP or PNGP pursuant to the applicable
NSR, less the Option Payment paid at closing pursuant to the relevant option agreement among Cymbria and PNRP or PNGP. Cymbria also has the right: (i) at any time following the date of any buyback exercise notice from PNRP and/or PNGP
and prior to the first anniversary of sale of product, to terminate the option and receive from PNRP and/or PNGP a refund of the related
option price paid by Cymbria; (ii) upon receipt from PNRP and/or PNGP of any termination, settlement or waiver of the buyback right or
royalty agreement and prior to the first anniversary of sale of product, to exercise the option or terminate the option, and if terminated
PNRP and/or PNGP shall refund the related option price paid by Cymbria; (iii) to exercise the option and compel PNRP and/or PNGP to exercise
the buyback right at any time within the first nine months immediately following the first anniversary of sale of product and not less
than 60 days prior to the date of exercise of the buyback right; and (iv) to require PNRP and/or PNGP to repurchase the option from Cymbria
for an amount equal to the option price at