Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 15

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 15
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bi 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
9). 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 from a base case of 15.9 million
tonnes, with a minimum grade of 2.5% nickel equivalent, accrued at the time of a decision to mine; 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$244,954) was the care
and maintenance funding contribution from April 1, 2021, to the closing date of the Selkirk APA. The Selkirk APA provides that if the
Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment of $35,940,000 (US$25,000,000) would be
upon the approval by the Minister of MMRGTES of the Company’s Section 42 and Section 43 applications (for the further extension
of the Selkirk mining licence and conversion of the Selkirk mining licence into an operating licence, respectively). For the third Selebi
instalment of $43,128,000 (US$30,000,000), if the Selkirk Mine were to be commissioned earlier than the Sele