Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 81

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 81
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 consideration (Note
10). On March 18, 2025, the Company closed a significant refinancing (Note 19) which included the conversion of the Term
Loan into equity.

The
Term Loan had an original principal amount of $15,000,000
and bore interest at a rate of 10%
per annum payable quarterly in arrears. The principal amount of the Term Loan was to mature on June 28, 2026. The obligations of the
Company pursuant to the Term Loan were fully and unconditionally guaranteed by each of the Company’s existing and future
subsidiaries. The Term Loan was secured by a pledge of all the shares of the Company’s subsidiaries as well as by way of a
general security agreement at the parent level and debentures and hypothecations at the subsidiary level. The Term Loan was subject
to certain covenants and provisions on events of default, repayments and mandatory prepayments, including:

●increase
                                            in the interest rate payable on the Term Loan to 15% per annum upon the occurrence of an
                                            event of default; 

●the
                                            Company could prepay all or any portion of the principal amount outstanding with a minimum
                                            repayment amount of $500,000 and in an integral multiple of $100,000, together with all accrued
                                            and unpaid interest on the principal amount being repaid; and

●mandatory
                                            prepayment was to be made when the Company had non-ordinary course asset sales or other dispositions
                                            of property or the Company received cash from the issuance of indebtedness for borrowed money.

As
at December 31, 2024, the Company was in compliance with the Term Loan covenants.

    F-20

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

In
connection with the Term Loan, the Company issued an aggregate of 2,000,000, non-transferable Common Share purchase warrants (the “Non-Transferable
Warrants”) to Cymbria. Each Non-Transferable Warrant is exercisable by Cymbria to purchase one Common Share at a cash purchase
price of $1.4375 per Common Share until June 28, 2026.

Further,
on December 14, 2023, the Company and Cymbria closed an amendment to the terms of the existing Term Loan, increasing the principal