Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 191

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 2
Chunk 191
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 to the Selkirk purchase agreement, the purchase of the Selkirk Mine is also subject to a royalty agreement as well as a contingent
consideration agreement with the liquidator. The royalty agreement consists of an NSR of 1% on the net value of sales of concentrate
or other materials with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full. The
contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.

NSR
Option

The
Company received $2,750,000 (the “Option Payment”) from Cymbria for their right to participate in the Company’s
right to repurchase one-half of the Selebi NSR and the entirety of the Selkirk NSR. Cymbria also has the right: (i) at any time following
the date of any buyback exercise notice from PNRP and/or PNGP and prior to the first anniversary of sale of product, to terminate the
option and receive from PNRP and/or PNGP a refund of the related option price paid by Cymbria; (ii) upon receipt from PNRP and/or PNGP
of any termination, settlement or waiver of the buyback right or royalty agreement and prior to the first anniversary of sale of product,
to exercise the option or terminate the option, and if terminated PNRP and/or PNGP shall refund the related option price paid by Cymbria;
(iii) to exercise the option and compel PNRP and/or PNGP to exercise the buyback right at any time within the first nine months immediately
following the first anniversary of sale of product and not less than 60 days prior to the date of exercise of the buyback right; and
(iv) to require PNRP and/or PNGP to repurchase the option from Cymbria for an amount equal to the option price at any time commencing
on the first anniversary of sale of product, provided PNRP and/or PNGP have not provided a buyback exercise notice or notice of any termination,
settlement or waiver of the buyback right or royalty agreement to Cymbria.

41

Contingencies

There
are no environmental liabilities associated with the Mines as at the acquisition dates as all liabilities incurred prior to the acquisitions
are the responsibility of the sellers, BCL and Tati Nickel Mining Company (“TNMC”). The Company has an obligation
for the rehabilitation costs arising subsequent to the acquisitions. As of September 30,