Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 80

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 80
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 outstanding balance of $656,064 (BWP 6,528,000) on December 10, 2024. There were no amounts outstanding under the agreement at
December 31, 2024, and the assets are now 100% owned by the Company.

In
addition to the above purchase price, the Company was required to pay to the Seller an agreed interest amount of 6% per annum on the
outstanding balance, accrued and payable monthly. The Company recognized a finance lease for this lease.

Drilling
Equipment

In
March 2023, the Company entered into a drilling equipment supply agreement (the “Equipment Agreement”) with Forage
Fusion Drilling Ltd. (“Forage”) to purchase specific drilling equipment on a “rent to own” basis with
the purchase price to be paid in monthly payments.

Pursuant
to the Equipment Agreement, the aggregate purchase price payable to Forage was $2,942,000. A deposit of $1,700,000 was paid in March
2023. The balance was payable in twelve equal monthly instalments of $103,500. Based on the stated equipment purchase price of $2,735,000
and monthly installments, the implied interest rate for the arrangement was 35%. The final installment was paid on April 12, 2024 and
the equipment is now 100% owned by the Company. The Company recognized a finance lease for this lease.

Operating
Leases

The
Company has operating leases primarily related to surveying and mobile equipment with initial lease terms of twelve months or less. The
Company records these in general exploration expenses within the statement of operations and comprehensive loss.

9.
TERM LOAN

On
June 28, 2023, the Company closed a financing with Cymbria Corporation (“Cymbria”), EdgePoint Investment Group Inc.
and certain other entities managed by it (“EdgePoint”) for aggregate gross proceeds to the Company of $33,999,200.
The financing included three concurrent and inter-conditional transactions (collectively the “2023 Financing Transactions”)
comprised of an equity offering of units for $16,249,200 (the “Equity Financing”), a three year term loan of $15,000,000
(the “Term Loan”) and option payments of $2,750,000 (the “Option Payment”) to acquire a 0.5% net
smelter returns royalty on the Mines in certain circumstances upon payment of further