Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 85

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 85
---
 smelter returns royalty on the Selebi Mines. PNRP has a contractual right to repurchase one-half of the Selebi NSR at a future time
on payment by PNRP to the liquidator of $28,778,000
(US$20,000,000).

    F-22

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

PREM’s
indirect wholly-owned subsidiary Premium Nickel Group Proprietary Limited (“PNGP”) acquired the Selkirk Mine in August
2022 out of liquidation. Pursuant to the acquisition agreement, the liquidator retained a 1%
net smelter returns royalty on the Selkirk Mine. PNGP has a contractual right to repurchase the entirety of the Selkirk NSR at a future
time on payment by PNGP to the liquidator of $2,877,800
(US$2,000,000).

Each
of PNRP and PNGP has agreed to grant Cymbria, in exchange for the Option Payment, an option to participate in any such repurchase of
the applicable portion of its NSR from the relevant liquidator. Cymbria will, following the exercise of its option to participate in
any such repurchase, acquire a 0.5% net smelter returns royalty on the applicable property by paying an amount equal to one half of the
repurchase price payable by PNRP or PNGP pursuant to the applicable NSR, less the Option Payment paid at closing pursuant to the relevant
option agreement among Cymbria and PNRP or PNGP, as applicable. Cymbria has the right to put its options back to PNRP and PNGP in certain
circumstances in return for the reimbursement of the applicable portion of the Option Payment. Cymbria also has the right to compel the
Company to repurchase the applicable portion of its NSR from the relevant liquidator.

Under
the NSR option purchase agreements, Cymbria could acquire a 0.5% net smelter returns royalty on the Selebi Mines and Selkirk Mine upon
payment of $11,658,687 (US$8,102,500) and $1,165,869 (US$810,250), respectively.

  As
part of the Term Loan conversion into equity that closed on March 18, 2025, (Note 19), the Company