Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 2

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 2
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 may be affected by a number of factors.
Substantial expenditures are required to establish mineral reserves that are sufficient to support commercial mining operations.

Inherent risks associated with the economics of developing mineral properties

Substantial
expenses are required to establish and upgrade mineral resources and mineral reserves through drilling, to develop metallurgical processes
to extract metal from ore and to develop the mining and processing facilities and infrastructure at any site chosen for mining. No assurance
can be given that minerals will be discovered in sufficient quantities to justify commercial operation or that the funds required for
development can be obtained on a timely basis.

The
marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond the Company’s control
and which cannot be predicted, such as market fluctuations, the proximity and capacity of milling facilities, mineral markets and processing
equipment, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing
and exporting of minerals, and environmental protection. Depending on the price of minerals produced, the Company may determine that
it is impractical to commence commercial production.

II. FINANCIAL RISKS

Negative operating cash flow, reliance on additional
financing, and 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 and grow its operations.
Furthermore, additional financing, whether through the issue of additional equity and/or debt securities and/or project level debt, will
be required to continue the development of the Company’s material projects and there is no assurance that additional capital or
other types of financing will be available or that these financings will be on terms at least as favourable to the Company as those previously
obtained, or at all. These material uncertainties cast substantial doubt about the Company’s ability to continue as a going concern.
The accompanying 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.