Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 197

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 197
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 of the Company to continue operations as a going concern is ultimately dependent upon achieving
profitable operations and its ability to obtain adequate financing. The Company incurred a net loss of
$42,420,283 for the year
ended December 31, 2024 (December 31, 2023 - $32,376,069).
To date, the Company has not generated profitable operations from its resource activities and will need to invest additional funds
in carrying out its planned evaluation, development and operational activities.

It
is not possible to predict whether future financing efforts will be successful or if the Company will attain a profitable level of operations.
These material uncertainties cast substantial doubt about the Company’s ability to continue as a going concern. These consolidated
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification
of liabilities and the reported expenses and comprehensive loss that might be necessary should the Company be unable to continue as a
going concern. These adjustments could be material.

The
properties in which the Company currently has an interest are in pre-revenue stage. As such, the Company is dependent on external financing
to fund its activities. In order to carry out the planned activities and cover administrative costs, the Company will use its existing
working capital and raise additional amounts as needed. Further, the second instalment under the Selebi APA (defined in Note 5) of $35,972,500
(US$25,000,000) is due January 31, 2026.

On
March 18, 2025, the Company closed a significant refinancing which included the conversion of the Term Loan into equity (Note 19).
While this transaction will provide sufficient capital for the Company to fund operations in the near term, the Company will need
further funding to support advancement of the Selebi Mines and the Selkirk Mine toward the development stage.

Although
the Company has been successful in its past fundraising activities, there is no assurance as to the success of future fundraising efforts
or as to the sufficiency of funds raised in the future.

  2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 (a) Statement of Compliance

These
consolidated financial statements reflect the accounts of the Company and have been prepared in accordance with generally accepted accounting
principles in the United States (“US GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange
Commission (“SEC”) for financial information