Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 436

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 7A
Chunk 436
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. Non-monetary items measured at fair value
are reported at the exchange rate prevailing at the date when fair values were determined.

Exchange
differences arising on the translation of monetary items or on settlement of monetary items are recognized in net loss in the year in
which they arise.

    F-10

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

Exchange
differences arising on the translation of non-monetary items are recognized in other comprehensive loss to the extent that gains and
losses arising on those non-monetary items are also recognized in other comprehensive loss. Where the non-monetary gain or loss is recognized
in net loss, the exchange component is also recognized in net loss.

 (f) Foreign operations

In
the Company’s consolidated financial statements, all assets, liabilities and transactions of the Company’s entities with
a functional currency other than the Canadian dollar are translated into Canadian dollars upon consolidation. The functional currency
of the Company’s subsidiaries in Barbados is the USD, and the BWP for the subsidiaries in Botswana. On consolidation, assets and
liabilities have been translated into Canadian dollars at the closing rate on the balance sheet date. Fair value adjustments arising
on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into Canadian
dollars at the closing rate on the balance sheet date. Income and expenses have been translated into Canadian dollars at the average
rate over the reporting period. Exchange differences are charged or credited to other comprehensive loss and recognised in the currency
translation reserve in equity. On disposal of a foreign operation, the related cumulative translation differences recognised in equity
are reclassified to profit or loss and are recognised as part of the gain or loss on disposal.

 (g) Cash and Cash Equivalents

Cash
and cash equivalents include all highly-liquid investments with an original maturity of three months or less. The Company minimizes its
credit risk by investing its cash and cash equivalents with major Canadian and international banks and financial institutions with a
minimum long-term credit rating of A, as defined by Standard & Poor’s. The Company’s management believes that no concentration
of credit risk exists with respect to the investment of its cash and cash equivalents.

 (h) Exploration and evaluation assets

Costs
of leasing, exploration, evaluation, carrying and retaining unproven mineral properties are expensed as incurred. If the Company identifies
pro