Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 23

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 23
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6. For the year ended December 31, 2024, the corresponding amount of $1,168,729
was reported in amounts due to related parties.

Share issuance costs payable relates to various
legal, listing and financing fees incurred as part of the March 2025 Financing (defined in Note 8).

 8. TERM LOAN

The Company had a three-year term loan (the “Term
Loan”) with Cymbria Corporation (“Cymbria”), the lender and an affiliate of the Company’s largest
shareholder, EdgePoint Investment Group Inc. (“EdgePoint”), in the amount of $20,882,353 which bore interest at a
rate of 10% per annum and was to mature on June 28, 2026.

On March 18, 2025, the Company closed a financing
transaction (the “March 2025 Financing”) which included a non-brokered private placement (Note 10) and the conversion
of the Term Loan to equity (the “Debt Conversion”).

The Company issued to Cymbria an aggregate of
69,607,843 units (each, a “Settlement Unit”) at a deemed issue price of $0.30 per Settlement Unit in full satisfaction
of the $20,882,353 principal amount outstanding under the Term Loan. Accrued interest under the Term Loan, up to the date of the Debt
Conversion, in the amount of $268,896 was settled in cash. Each Settlement Unit consisted of one Common Share of the Company and one
Common Share purchase warrant (each, a “Settlement Warrant”) of the Company.

Each Settlement Warrant entitles the holder to
acquire one additional Common Share of the Company at a price of $0.40 per Common Share until March 18, 2028. If, at any time prior to
the expiry date, the volume-weighted average trading price of the Common Shares is at least $2.00 per Common Share for a period of 20
trading days, the Company may, at its option, accelerate the expiry date with 30 days’ notice to the Settlement Warrant holders.

The fair value of the Common Shares issued as
part of the Settlement Units was estimated at $17,727,018 and was determined by applying an implied discount for lack of marketability
to the market observed price on the date of issuance. The fair value of the Settlement Warrants was estimated at $7,398,104 using