Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 24

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 24
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 a Monte
Carlo model. The $5,982,434 difference between the fair value of the Settlement Units issued of $25,125,122 and the carrying amount of
the Term Loan of $19,142,687 was recognized as a loss in the current period.

    17
     Notes to the Unaudited Condensed Interim Consolidated Financial StatementsFor the three months ended March 31, 2025 and 2024(Expressed in Canadian dollars)

The Monte Carlo model used to value the Settlement
Warrants was based on the following assumptions:

SCHEDULE
OF FAIR VALUE OF SETTLEMENT WARRANTS

    Settlement Warrants 
  
    Expected dividend yield 
     0%
  
    Share price 
    $0.25 
  
    Expected share price volatility 
     81.8%
  
    Risk free interest rate 
     2.57%
  
    Expected life of warrant 
     3 years 

The volatility was determined by calculating
the historical volatility of the Company’s share price over a 3-year period using daily closing prices. The formula used to compute
historical volatility is the standard deviation of the logarithmic returns. The same implied discount for lack of marketability for purposes
of the Common Shares valuation was also applied to the share price for the Settlement Warrants valuation.

In connection with the March 2025 Financing,
the Company issued: (i) 4,000,000 Common Shares to TriView
Capital Ltd. (“TriView”) for its services as finder; (ii) 9,000,000 Common Shares to Fiore Management and Advisory
Corp. (“Fiore”) and 3,750,000 Common Shares to Bowering Projects Ltd. (“Bowering”) for certain
advisory services; and (iii) 3,586,709 Common Shares to a financial advisor for financial advisory services. The fair value of
these shares was determined to be $5,179,586. In addition to the Common Shares, the Company incurred various legal, listing and financing
fees payable in cash totalling $2,371,203. Certain of these fees were allocated between the non-brokered private placement (Note 10)
and Debt Conversion transactions based on the value of the units issued under each transaction. As of March 31, 2025, the Company has
made cash payments relating to these fees of $397,250.

All securities issued as part of the Debt Conversion