Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 28

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 28
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 advisory
services. The fair value of these shares was determined to be $5,179,586. In addition to the Common Shares, the Company incurred various
legal, listing and financing fees payable in cash totalling $2,371,203. Certain of these fees were allocated between the non-brokered
private placement and Debt Conversion (Note 8) transactions based on the value of the units issued under each transaction. As of March
31, 2025, the Company has made cash payments relating to these fees of $397,250.

    19
     Notes to the Unaudited Condensed Interim Consolidated Financial StatementsFor the three months ended March 31, 2025 and 2024(Expressed in Canadian dollars)

All securities issued under the Private Placement
are subject to a hold period expiring July 19, 2025, with the exception of the Common Shares issued to Fiore and Bowering which have
a hold period expiring March 19, 2026.

The fair value of the Common Shares issued under
the Private Placement was estimated at $39,048,922 and was determined by applying an implied discount for lack of marketability to the
market observed price on the date of issuance. The fair value of the Private Placements Warrants was estimated at $6,951,078 using the
Black-Scholes Option Pricing Model.

The fair value of the Private Placement Warrants
was calculated using the following assumptions:

SCHEDULE
OF FAIR VALUE OF WARRANTS

    Private Placement 
Warrants 
  
    Expected dividend yield 
     0%
  
    Share price 
    $0.25 
  
    Expected share price volatility 
     81.8%
  
    Risk free interest rate 
     2.57%
  
    Expected life of warrant 
     3 years 

The volatility was determined by calculating
the historical volatility of the Company’s share price over a 3-year period using daily closing prices. The formula used to compute
historical volatility is the standard deviation of the logarithmic returns. The same implied discount for lack of marketability for purposes
of the Common Shares valuation was also applied to the share price for the Settlement Warrants valuation.

As at March 31, 2025, the Company had 428,986,474
Common Shares issued and outstanding (December 31, 2024 – 185,708,588).

Year ended December 31, 2024

During the