Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 39

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 39
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 Company has the right to buy-back in full. The contingent consideration
agreement is on similar terms as the Selebi Mines contingent consideration.

NSR
Option

The
Company received $2,750,000 (the “Option Payment”) from Cymbria for their right to participate in the Company’s
right to repurchase one-half of the Selebi NSR and the entirety of the Selkirk NSR. Cymbria has the right to put its options back to
the Company in certain circumstances in return for the reimbursement of the applicable portion of the Option Payment. Cymbria also has
the right to compel the Company to repurchase the applicable portion of its NSR from the relevant liquidator.

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Term
Loan

The
Company had an outstanding Term Loan at December 31, 2024, in the amount of $20,882,353 that bore interest at a rate of 10% per
annum payable quarterly in arrears, with the principal maturing on June 28, 2026. The Term Loan was subject to certain covenants and
provisions on events of default, repayments and mandatory prepayments, including: (i) increase in the interest rate payable on the
Term Loan to 15% per annum upon the occurrence of an event of default; (ii) the Company could prepay all or any portion of the
principal amount outstanding with a minimum repayment amount of $500,000 and in an integral multiple of $100,000, together with all
accrued and unpaid interest on the principal amount being repaid; and (iii) mandatory prepayment was to be made when the Company had
non-ordinary course asset sales or other dispositions of property or the Company received cash from the issuance of indebtedness for
borrowed money. As at December 31, 2024, the Company was in compliance with the Term Loan covenants.

In
March 2025, the Company closed a significant refinancing and the deleveraging of its balance sheet with the conversion of the Term
Loan into equity.

While
the Company has arranged this additional financing, the proceeds are intended for the advancement of exploration and evaluation activities
at the Mines. Therefore, the Company will need to arrange additional financing to meet its commitments under the asset purchase agreements.

Contingencies

There
are no environmental liabilities associated with the Mines as at the acquisition dates as all liabilities incurred prior to the acquisitions
are the responsibility of the sellers