Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 8

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 8
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 together with the Selebi Mines, the “Mines”).

    9
     Notes to the Unaudited Condensed Interim Consolidated Financial StatementsFor the three months ended March 31, 2025 and 2024(Expressed in Canadian dollars)

Going Concern

The Company, being in the exploration stage,
is subject to risks and challenges similar to companies in a comparable stage of exploration and development. These risks include the
challenges of securing adequate capital for exploration and advancement of the Company’s material projects, operational risks inherent
in the mining industry, and global economic and metal price volatility, and there is no assurance management will be successful in its
endeavors.

These consolidated financial statements have
been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable
future and will be able to realize assets and discharge liabilities in the ordinary course of operations. The ability of the Company
to continue operations as a going concern is ultimately dependent upon achieving profitable operations and its ability to obtain adequate
financing. The Company incurred a net loss of $15,228,330 for the three months ended March 31, 2025. To date, the Company has not generated
profitable operations from its resource activities and will need to invest additional funds in carrying out its planned evaluation, development
and operational activities.

It is not possible to predict whether future
financing efforts will be successful or if the Company will attain a profitable level of operations. These material uncertainties cast
substantial doubt about the Company’s ability to continue as a going concern. These consolidated 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. These adjustments
could be material.

The properties in which the Company currently
has an interest are in pre-revenue stage. As such, the Company is dependent on external financing to fund its activities. In order to
carry out the planned activities and cover administrative costs, the Company will use its existing working capital and raise additional
amounts as needed. Further, the second instalment under the Selebi APA (defined in Note 5) of $35,940,000 (US$25,000,000) is due January
31, 2026.

On March 18, 2025, the Company closed a significant
refinancing (Note