Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 219

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 219
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 interest rate for the arrangement was 35%. The final installment was paid on April 12, 2024 and
the equipment is now 100% owned by the Company. The Company recognized a finance lease for this lease.

Operating
Leases

The
Company has operating leases primarily related to surveying and mobile equipment with initial lease terms of twelve months or less. The
Company records these in general exploration expenses within the statement of operations and comprehensive loss.

9.
TERM LOAN

On
June 28, 2023, the Company closed a financing with Cymbria Corporation (“Cymbria”), EdgePoint Investment Group Inc.
and certain other entities managed by it (“EdgePoint”) for aggregate gross proceeds to the Company of $33,999,200.
The financing included three concurrent and inter-conditional transactions (collectively the “2023 Financing Transactions”)
comprised of an equity offering of units for $16,249,200 (the “Equity Financing”), a three year term loan of $15,000,000
(the “Term Loan”) and option payments of $2,750,000 (the “Option Payment”) to acquire a 0.5% net
smelter returns royalty on the Mines in certain circumstances upon payment of further consideration (Note
10). On March 18, 2025, the Company closed a significant refinancing (Note 19) which included the conversion of the Term
Loan into equity.

The
Term Loan had an original principal amount of $15,000,000
and bore interest at a rate of 10%
per annum payable quarterly in arrears. The principal amount of the Term Loan was to mature on June 28, 2026. The obligations of the
Company pursuant to the Term Loan were fully and unconditionally guaranteed by each of the Company’s existing and future
subsidiaries. The Term Loan was secured by a pledge of all the shares of the Company’s subsidiaries as well as by way of a
general security agreement at the parent level and debentures and hypothecations at the subsidiary level. The Term Loan was subject
to certain covenants and provisions on events of default, repayments and mandatory prepayments, including:

●increase
                                            in the interest rate payable on the Term Loan to 15% per annum upon the occurrence of an
                                            event of default; 

●the
                                            Company could prepay all or any portion of the principal amount outstanding with a minimum
                                            repayment amount of $