Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 72

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 72
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The
Company is a mineral exploration and development company that is focused on the planned redevelopment of the previously producing Mines.
To that end, the Company’s properties have no established mineral reserves at this time. While the Selebi and Selkirk projects
have mineral resource estimates, the Company has not yet established any proven or probable mineral reserves on the Selebi Mines or Selkirk
Mine projects. The lack of established mineral reserves means that the economic viability of the Selebi and Selkirk projects has not
been confirmed. There is no assurance that further exploration and engineering studies will lead to the discovery of an economically
viable mineral deposit.

Further,
there is no assurance that any of the Company’s projects can be mined profitably. Accordingly, it is not assured that the Company
will realize any profits in the short to medium term, if at all. Any profitability in the future from the business of the Company will
be dependent upon the development and commercial mining of economically viable mineral deposits, which in itself is subject to numerous
risk factors.

The
exploration and development of mineral deposits involves a high degree of financial risk over a significant period of time that even
a combination of management’s careful evaluation, experience and knowledge may not eliminate. Few properties that are explored
are ultimately developed into producing mines. Major expenses may be required to establish resources and reserves by drilling and to
construct mining and processing facilities at a particular site. It is not possible to ensure that current work programs of the Company
will result in profitable commercial mining operations. The profitability of the Company’s operations will be, in part, directly
related to the cost and success of its work programs, which may be affected by a number of factors. Substantial expenditures are required
to establish mineral reserves that are sufficient to support commercial mining operations.

48

II.
FINANCIAL RISKS

The
impact negative operating cash flow and the reliance on additional financing have on the Company’s ability to continue operations
as a going concern

The
Company has negative cash flow from operations. As a result of the expected expenditures to be incurred by the Company for the exploration
and advancement of the Company’s material projects, the Company anticipates that negative operating cash flows will continue until
one or both of the Company’s material projects enters commercial production (if at all). There can be no assurance that the Company
will generate positive cash flow from operations in the future.

The
Company will require additional capital in order to fund its future activities for its material projects and maintain