Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 211

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 4
Chunk 211
---
 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 Selkirk Mine to the liquidators, and impact the
market price of the Common Shares.

There
are inherent risks associated with the economics of developing mineral properties

Substantial
expenses are required to establish and upgrade mineral resources and mineral reserves through drilling, to develop metallurgical processes
to extract metal from ore, and to develop the mining and processing facilities and infrastructure at any site chosen for mining. These
risks are inherently higher at the preliminary economic assessment stage, which represents an early phase of project evaluation where
economic estimates are preliminary in nature and based on limited geological and technical data. In addition, the expenses and capital
expenditures incurred by the Company are subject to the risks of cost inflation.

No
assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operation or that the funds required
for development can be obtained on a timely basis. The marketability of any minerals acquired or discovered may be affected by numerous
factors which are beyond the Company’s control and many of which cannot be predicted, such as market fluctuations, the proximity
and capacity of milling and smelting facilities, mineral markets and processing equipment, and such other factors as government regulations,
including regulations relating to royalties, permitted production levels, importing and exporting of minerals, and environmental protection.
Depending on the price of minerals produced, the Company may determine that it is impractical to commence commercial production.

The
Company may be unable to close the November