Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 227

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 227
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 the volume-weighted average trading
price of the Common Shares is at least $2.00 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 Warrant holders.

All
securities issued under the June 2024 Financing were subject to a hold period of four months plus one day from the date of issuance.
In connection with the June 2024 Financing, SCP Resource Finance LP (“SCP”), in its capacity as financial advisor
to the Company, was paid an advisory fee which the Company has satisfied by issuing to SCP an aggregate of 1,025,000 Units (comprised
of 1,025,000 Common Shares and 1,025,000 non-transferable Warrants), and Fort Capital was paid an advisory fee of $250,000, in each case
in consideration for providing certain advisory services to the Company in connection with the June 2024 Financing.

The
fair value of the Warrants issued under the June 2024 Financing, calculated using the Monte Carlo model, was estimated at $12,533,135.
Gross proceeds raised of $27,499,999 and related issuance costs of $358,746 in cash, and the value of $1,087,755 for 1,025,000 Units
granted to SCP were allocated to the Common Shares and the 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 
    $0.81  
    $0.84 
  
    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.

As
at December 31, 2024, the Company had 185,708,588 Common Shares issued and outstanding (December 31