Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 69

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 69
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 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:

    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.

43

Term Loan – the Term Loan is 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 rate. As the NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are
in the exploration stage, the fair value of the call and put on the options as at March 31, 2025 and December 31, 2024 is $nil.

Interest Rate Risk

The Company’s exposure to interest rate
risk arises from