Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 37

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 37
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 year from the original expiry date of January 31, 2025. This extension
                                            follows successful completion by the Company of the work and investment milestones required
                                            by the Selebi APA.

●The
                                            third instalment of US$30,000,000 is payable on the completion of mine construction and
                                            production start-up by the Company on or before January 31, 2030, but not later than four
                                            years after the approval by the Minister of MMRGTES of the Company’s Section 42 and
                                            Section 43 applications.

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 BCL 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. The
Company’s accounting policy is to measure and record contingent consideration when the conditions associated with the
contingency are met. As of December 31, 2024, none of the conditions of the second and third instalments have been met, hence these
amounts are not accrued in the Financial Statements.

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 BCL Liquidator. The royalty agreement consists of a net smelter royalty (“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%. 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.

-29-

Both
the Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and
3% of all base metals sales