Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 39

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 39
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 included within Level
    1 that are observable for the asset or liability, either directly or indirectly; and

    Level 3:
    One or more significant inputs used in a valuation
    technique are unobservable in determining fair values of the asset or liability.

Determination of fair value and the resulting
hierarchy requires the use of observable market data whenever available. The classification of an asset or liability in the hierarchy
is based upon the lowest level of input that is significant to the measurement of fair value.

The carrying value of cash and cash equivalents,
trade payables and accrued liabilities approximate their fair value due to their short-term nature and therefore have been excluded from
the table below. A summary of the carrying value and fair value of other financial instruments were as follows:

 SCHEDULE
OF CARRYING VALUE AND FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS

    March 31, 2025  
    December 31, 2024 

    Classification 
    Carrying Value $  
    Fair Value $  
    Carrying Value $  
    Fair Value $ 
  
    DSU liability 
    Level 1 
     930,840  
     930,840  
     941,664  
     941,664 
  
    Vehicle financing 
    Level 2 
     216,454  
     216,454  
     246,137  
     246,137 
  
    Term loan 
    Level 3 
     -  
     -  
     18,983,212  
     20,862,478 
  
    NSR option liability 
    Level 2 
     2,750,000  
     2,750,000  
     2,750,000  
     2,750,000 

DSU liability – the fair value of the DSUs
is measured using the closing price of the Company’s Common Shares at the end of each reporting period.

Vehicle financing – The fair values approximate
carrying values as the interest rates are comparable to current market rates.

Term loan – the term loan was carried at
amortized cost. The fair value measurement of the term loan was based on an income approach.

NSR option liability – The fair value of
the NSR options is determined using a valuation model that incorporates such factors as discounted cash flow projections, metal price
volatility, and risk-free interest