Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 35

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 35
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4 Unit for gross proceeds of $12,497,000.

Each
June 2024 Warrant entitles the holder thereof to acquire one Common Share for a period expiring 60 months following the date of issuance
at a price of $22.00 per Common Share. If, at any time prior to the expiry date, the volume-weighted average trading price of the Common
Shares is at least $40.00 per Common Share for a period of 20 trading days, the Company may, at its option, accelerate the expiry date
with 30 days’ notice to the June 2024 Warrant holders.

In
connection with the June 2024 Financing, the Company issued 51,250 June 2024 Units (comprised of 51,250 Common Shares and 51,250 non-transferable
June 2024 Warrants) to a financial advisor.

The
fair value of the June 2024 Warrants, calculated using the Monte Carlo model, was estimated at $12,533,135. Gross proceeds of
$27,499,999 and related issuance costs of $358,746 in cash, and the value of $1,087,755 for 51,250 June 2024 Units granted to the financial
advisor were allocated to the Common Shares and the June 2024 Warrants based on relative fair values. The key inputs used in the Monte-Carlo
model were as follows:

SCHEDULE
OF FAIR VALUE OF WARRANTS

    June 14, 2024  
    June 21, 2024 
  
    Expected dividend yield 
     0% 
     0%
  
    Share price 
    $16.20  
    $16.80 
  
    Expected share price volatility 
     83.17% 
     83.71%
  
    Risk free interest rate 
     3.23% 
     3.30%
  
    Expected life of warrant 
     5 years  
     5 years 

The
volatility was determined by calculating the historical volatility of stock prices of the Company over a 5-year period using daily closing
prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns.

During
the year ended December 31, 2024, 6,313 Common Shares were issued for the net exercise of 13,905 Options.

    b)
    Warrants

The
following summarizes Common Share purchase warrant activity