Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 109

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 109
---
(2,082,530)
  
    Term Loan balance, December 31, 2024 
     18,983,212 
  
    Accrued interest 
     268,896 
  
    Accretion of warrant value and transaction costs 
     159,475 
  
    Interest paid 
     (268,896)
  
    Debt Conversion 
     (19,142,687)
  
    Term Loan balance, September 30, 2025 
     - 

    17

Notes
to the Unaudited Condensed Interim Consolidated Financial Statements

For
the three and nine months ended September 30, 2025 and 2024

(Expressed
in Canadian dollars)

10.
NSR OPTION 

In
2023, Cymbria paid an aggregate of $2,750,000 (“Option Payment”) to two subsidiaries of NEXM to acquire a right to
participate with such subsidiaries in the exercise of certain contractual rights. The Option Payment was allocated to PNRP and PNGP (defined
below) for $2,500,000 and $250,000, respectively.

As
the NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair
value of the call and put on the options as at September 30, 2025, and December 31, 2024 is $nil. The Option Payment received in cash
was recorded as a non-current liability.

NEXM’s
indirect wholly owned subsidiary, PNRP, acquired the Selebi Mines in January 2022 out of liquidation. Pursuant to the acquisition
agreement, the liquidator retained a 2%
net 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 $27,842,000
(US$20,000,000).

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 PNG