Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 31

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 31
---
 2024

(Expressed
in Canadian dollars)

10.
NSR OPTION 

In
2023, Cymbria paid an aggregate of $2,750,000 (“Option Payment”) to two subsidiaries of NEXM to acquire a right to
participate with such subsidiaries in the exercise of certain contractual rights. The Option Payment was allocated to PNRP and PNGP (defined
below) for $2,500,000 and $250,000, respectively.

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 September 30, 2025, and December 31, 2024 is $nil. The Option Payment received in cash
was recorded as a non-current liability.

NEXM’s
indirect wholly owned subsidiary, PNRP, acquired the Selebi Mines in January 2022 out of liquidation. Pursuant to the acquisition
agreement, the liquidator retained a 2%
net smelter returns royalty on the Selebi Mines. PNRP has a contractual right to repurchase one-half of the Selebi NSR at a future
time on payment by PNRP to the liquidator of $27,842,000
(US$20,000,000).

PREM’s
indirect wholly owned subsidiary, Premium Nickel Group Proprietary Limited (“PNGP”), acquired the Selkirk Mine in
August 2022 out of liquidation. Pursuant to the acquisition agreement, the liquidator retained a 1%
net smelter returns royalty on the Selkirk Mine. PNGP has a contractual right to repurchase the entirety of the Selkirk NSR at a
future time on payment by PNGP to the liquidator of $2,784,200
(US$2,000,000).

Each
of PNRP and PNGP has agreed to grant Cymbria, in exchange for the Option Payment, an option to participate in any such repurchase of
the applicable portion of its NSR from the relevant liquidator. Cymbria will, following the exercise of its option to participate in
any such repurchase, acquire a 0.5% NSR royalty on the applicable property by paying an amount equal to one half of the repurchase price
payable by PNRP or PNGP pursuant to the applicable NSR, less the Option Payment paid at closing pursuant to