Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 16

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 16
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bi Mines, the payment would
trigger on the Selkirk Mine’s commission date.

In addition to the Selkirk APA, the purchase
of the Selkirk Mine is also subject to a royalty agreement as well as a contingent consideration agreement with the liquidator. The royalty
agreement consists of a net smelter returns royalty (the “Selkirk NSR”) of 1% on the net value of sales of concentrate
or other materials with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full (Note
9). The contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.

In August 2023, the Company entered into a binding
commitment letter with the liquidator of BCL, which is subject to customary closing conditions, to acquire a 100% interest in two additional
deposits (“Phikwe South” and the “Southeast Extension”) located adjacent to and immediately north
of the Selebi North shaft. The impact is to increase the Selebi mining licence area. While the remaining historic resources at Phikwe
South and the Southeast Extension occur within the expanded Selebi mining licence, the amended licence intentionally does not include
the historic mine workings and infrastructure at these previously-producing properties, and the Company has no liability for historic
environmental issues at those sites.

    14
     Notes to the Unaudited Condensed Interim Consolidated Financial StatementsFor the three months ended March 31, 2025 and 2024(Expressed in Canadian dollars)

The upfront cost to the Company to acquire these
additional mineral properties is $1,437,600 (US$1,000,000). In addition, the Company agreed to additional work commitments of $7,188,000
(US$5,000,000) in the aggregate over four years. As a result of the expansion of the Selebi mining licence, the remaining asset purchase
obligations of the Company outlined in the original Selebi APA with the liquidator will each increase by 10%, or $7,906,800 (US$5,500,000)
in total, while the trigger events remain unchanged. The existing 2% NSR and contingent consideration agreement held by the liquidator
with respect to production from the Selebi mining licence will also apply to production from these additional deposits, subject to the
Company’s existing buy-back right for 50% of the NSR (