Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 97

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 97
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-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.

    12

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)

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 $34,802,500 (US$25,000,000) would be upon the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications
(for the further extension of the Selkirk mining licence and amendment of the Selkirk mining programme, respectively). For the third
Selebi instalment of $41,763,000 (US$30,000,000), if the Selkirk Mine were to be commissioned earlier than the Selebi Mines, the payment
would trigger on the Selkirk Mine’s commission date. The Selkirk APA provides for a three-year study phase originally expiring
August 17, 2025, which has been extended for one year to August 17, 2026.

In
addition to the Selkirk APA, the purchase of the Selkirk Mine 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 “Selkirk NSR”)
of 1% on the net value of sales of concentrate or other materials with respect to production from the Selkirk mining licence, which the
Company has the