Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 70

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 70
---
 financial conditions of the Company

In
January and August of 2022, the Company closed the acquisitions of the Selebi Mines and Selkirk Mine, respectively. Pursuant to the terms
of the acquisitions, the Company 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 due on January 31, 2026, and (ii) another US$30 million due upon the earlier of the commissioning
and start of production or four years from the mining licence renewal date for either the Selebi Mines or Selkirk Mine. Further, the
Selkirk APA provides for a three-year study phase expiring August 17, 2025, which can be extended for one year with written notice to
the liquidator. The Company has submitted the written notice and, as of the date of this Report, is awaiting formal acceptance by the
liquidator. The failure of the Company 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 Company, including the requirement to return the Selebi Mines or Selkirk Mine
to the liquidators, and impact the market price of the Common Shares.

Inherent
risks associated with discovering commercially-viable deposits

The
Company’s projects are in their exploration and evaluation stages. The exploration of mineral deposits involves significant financial
risks over a prolonged period of time, and most exploration projects do not result in the discovery of economically-viable deposits.
The commercial viability of exploiting any precious or base-metal deposit is dependent on a number of factors including infrastructure
and governmental regulation, in particular those relating to environment, taxes and royalties. No assurance can be given that minerals
will be discovered of sufficient quality, size and grade on any of the Company’s properties to justify a commercial operation.

Development
of the Company’s properties can only occur only after obtaining satisfactory exploration results. Although the Company’s
properties were past producing, there is no assurance that the Company’s mineral exploration activities will result in the confirmation
of a body of commercial ore on its exploration properties. Several years or more may pass between the discovery and development of commercial
mineable mineralized deposits