Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 59

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 59
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 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.

Historically,
the Company has prepared its financial statements under International Financial Reporting Standards, as issued by the International Accounting
Standards Board, for reporting as permitted by security regulators in Canada, as well as in the United States under the status of a foreign
private issuer and a non-accelerated filer as defined by the SEC. In Fiscal 2024, the Company determined that it no longer qualified
as a non-accelerated filer under the SEC rules, as the SEC rules apply to foreign private issuers. As a result, the Company elected to
report with the SEC on domestic forms and comply with domestic company rules, which permit the Company to continue to avail itself of
accommodations available to non-accelerated filers that file on domestic issuer forms. Consequently, the Company transitioned to preparing
its financial statements using US GAAP for its SEC filing requirements.

 (b) Basis of preparation

These
consolidated financial statements have been prepared under the historical cost convention, modified by the revaluation of any financial
assets and financial liabilities where applicable. The preparation of these consolidated financial statements in accordance with U.S.
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of