Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 346

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 346
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1, 2021 to the closing date of the Selkirk
APA. The Selkirk APA provides that if the Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment
of $35,972,500 (US$25,000,000) would be 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 $43,167,000 (US$30,000,000), if the Selkirk Mine were to be commissioned
earlier than the Selebi Mines, the payment would trigger on the Selkirk Mine’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 a net smelter returns royalty (the “Selkirk NSR”) of 1% on the net value of sales of concentrate or other materials
with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full (Note 10). The contingent
consideration agreement is on similar terms as the Selebi Mines contingent consideration.

In
August 2023, the Company entered into a binding commitment letter with the liquidator of BCL, which is subject to customary closing conditions,
to acquire a 100% interest in two additional deposits (“Phikwe South” and the “Southeast Extension”)
located adjacent to and immediately north of the Selebi North shaft. The impact is to increase the Selebi mining licence area. While
the remaining historic resources at Phikwe South and the Southeast Extension occur within the expanded Selebi mining licence, the amended
licence intentionally does not include the historic mine workings and infrastructure at these previously-producing properties, and the
Company has no liability for historic environmental issues at those sites.

The
upfront cost to the Company to acquire these additional mineral properties is $1,438,900 (US$1,000,000). In addition, the Company agreed
to additional work commitments of $7,194,500 (US$5,000,000) in the aggregate over four years. As a result of the expansion of the Selebi