Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 209

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 209
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 42 and Section 43 applications.

    F-16

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

The
total acquisition cost of the Selebi Mines included the first instalment of $2,086,830 (US$1,750,000) and the payment of the care and
maintenance funding contribution of $6,164,688 (US$5,178,747). As per the terms and conditions of the Selebi APA, the Company has the
option to cancel the second and third payments and return the Selebi Mines to the liquidator if the Company determines that the Selebi
Mines are not economical. The Company also has an option to pay in advance the second and third payments if the Company determines that
the Selebi Mines are economical.

In
addition to the Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent
consideration agreement with the liquidator. The
royalty agreement consists of a net smelter returns royalty (the “Selebi NSR”) of 2% on the net value of sales
of concentrate or other materials with respect to production from the Selebi mining licence, of which the Company has the right to
buy-back 50% (Note 10). The contingent consideration agreement consists of two components: (i) a sliding scale payment of
US$0.50/tonne of ore up to US$1.40/tonne of ore with respect to the discovery of new mineable deposits greater than 25 million
tonnes of ore and; (ii) price participation of 15% on post-tax net earnings directly attributable to an increase of 25% or more in
commodity prices, on a quarterly basis, for a period of seven years from the date of first shipment of concentrate or other
materials.

The
Company also negotiated a separate asset purchase agreement (the “Selkirk APA”) with the liquidator of Tati Nickel
Mining Company (“TNMC”) in January 2022 to acquire the Selkirk deposit and related infrastructure formerly operated
by TNMC. The transaction closed in August 2022.

The
Selkirk APA does not provide for a purchase price or initial payment for the purchase of the assets. The acquisition cost of the Selkirk
Mine of $327,109 (US$244,