Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 357

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 357
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-Transferable Warrants and Additional Warrants was estimated at $1,435,350 and $275,961 respectively, using the
Black-Scholes Option Pricing Model. At initial closing, the accounting was based on relative fair value under ASC 470 - Debt,
with proceeds and transaction costs allocated between the Term Loan and the Non-Transferrable Warrants. The Non-Transferrable Warrants
were allocated $1,352,054, including $83,296 in transaction costs. The Additional Warrants were accounted for as transaction costs for
obtaining the Additional Principal Amount. As such, $1,352,054 and $275,961 respectively were recorded in equity.

The
fair value of the Non-Transferable Warrants and Additional Warrants was calculated using the following assumptions:

SCHEDULE
OF FAIR VALUE OF NON-TRANSFERABLE AND ADDITIONAL WARRANTS

    Non-Transferable Warrants  
    Additional Warrants 
  
    Expected dividend yield 
     0% 
     0%
  
    Share price 
    $1.35  
    $1.14 
  
    Expected share price volatility 
     92.06% 
     63.54%
  
    Risk free interest rate 
     4.13% 
     3.73%
  
    Expected life of warrant 
     3 years  
     2.54 years 

The
volatility was determined by calculating the historical volatility of stock prices of the Company over the same period as the expected
life of the Transferable Warrants using daily closing prices. The formula used to compute historical volatility is the standard deviation
of the logarithmic returns.

The
Company used $7,637,329 of the proceeds from the Term Loan to prepay all principal, interest and fees owing by the Company pursuant to
the A&R Promissory Note (defined in Note 11) in favour of Pinnacle Island LP.

For
the year ended December 31, 2024, the Company paid $2,082,530 of interest costs to Cymbria (2023 – $793,392).

    F-21

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

The
following is a continuity of the Term Loan:

SCHEDULE
OF CONTINUITY OF TERM LOAN

    $ 
  
    Principal amount of the