Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 162

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 162
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 investment. The risk factors included in our prior SEC filings are supplemented with the following risk factors:

The
failure of the Corporation to comply with all post-closing covenants, study phase requirements, and contingent milestone payments relating
to the Mines could materially adversely affect the business, operations and financial conditions of the Corporation

In
January and August of 2022, the Corporation closed the acquisitions of the Selebi Mines and Selkirk Mine, respectively. Pursuant to the
terms of the acquisitions, the Corporation has to comply with certain milestone payments which, if not satisfied, will result in the
Mines reverting to the liquidators. There are approximately US$55 million in contingent post-closing milestone payments due to the liquidators
in connection with the Mines, with (i) US$25 million payable upon the approval by the MMRGTES of the Corporation’s Section 42 and
Section 43 applications (for the further extension of the mining license and amendment of mining programme, respectively) which are to
be submitted in March 2026 and require a compliant economic study, and (ii) another US$30 million payable on the completion of mine construction
and production start-up (commissioning) by the Corporation, but not later than four years after the approval by the Minister of MMRGTES
of the Corporation’s Section 42 and Section 43 applications. The Corporation expects to pay the US$25 million amount in the fourth
quarter of 2025. Further, the Selkirk asset purchase agreement provides for a three-year study phase which, pursuant to the agreement,
was extended for one year to August 17, 2026.

The
Corporation has made certain assumptions as to what constitutes a compliant economic study based on its interpretation of the Botswana
Mines and Minerals Act as no governing technical standard is specified. There can be no assurance that the Corporation’s interpretation
of the act will be consistent with the intended wording or application of the Botswana Mines and Minerals Act or that regulators will
accept the level of technical work currently contemplated. Any requirement for additional work or re-submission could delay approvals
and associated project timelines.

The
failure of the Corporation to comply with all the post-closing covenants, study phase requirements, and contingent milestone payments
relating to the Mines, if and when those milestones are achieved, could materially adversely affect the business, operations and financial
conditions of the Corporation, including the requirement to return the Selebi Mines or Selk