Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 6

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 6
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 and foreign currency. The Company operates in Canada, Barbados and Botswana and undertakes
transactions denominated in foreign currencies such as United States dollars, Euros, and the Botswanan pula, and consequently is exposed
to exchange rate risks. The Company is also exposed to equity price risk; the movements in individual equity prices or general movements
in the level of the stock market may potentially have an adverse impact on the Company’s earnings. The Company closely monitors
individual equity movements and the stock market to determine the appropriate course of action to be taken.

Acquisition of Botswana assets and related purchase commitments

On January 31, 2022, the Company closed the acquisition
of the Selebi project. However, pursuant to the terms of the acquisition, the Company has to comply with certain milestone payments, which
if not satisfied, will result in the Selebi project reverting to the BCL Liquidator. There are approximately US$55 million in contingent
post-closing milestone payments due to the BCL Liquidator in connection with the Selebi project, with (i) US$25 million due on January 31, 2026, and (ii) another US$30 million due upon the earlier of the commissioning and start of production at the Selebi
project or four years from the Selebi mining licence renewal date. The failure of the Company to comply with all the post-closing covenants
and contingent milestone payments relating to the Selebi project (if and when those milestones are achieved), could materially adversely
affect the business, operations and financial conditions of the Company and impact the market price of the Common Shares. In addition,
PREM closed its purchase of the Selkirk Mine in August 2022.

VI. REGULATORY RISKS

Compliance with governmental regulation

Exploration,
development, and operations on the Company’s properties will be affected to varying degrees by: (i) government regulations relating
to such matters as environmental protection, health, safety and labor; (ii) mining law reform; (iii) restrictions on production, price
controls, and tax increases; (iv) maintenance of claims; (v) tenure; and (vi) expropriation of property. There is no assurance that future
changes in such regulation, if any, will not adversely affect the Company’s operations. Changes in such regulation could result
in additional expenses and capital expenditures, availability of capital, competition, reserve uncertainty, potential conflicts of interest,
title risks, dilution