Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 153

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 153
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 Selkirk Mine, the purchase agreement does not provide for a purchase price or initial payment for the purchase of the assets.
The Selkirk purchase agreement provides that if the Company elects to develop Selkirk first, the payment of the second Selebi instalment
of US$25 million would be due upon the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications (for the
further extension of the Selkirk mining license and amendment of Selkirk mining programme, respectively). For the third Selebi instalment
of US$30 million, if Selkirk were commissioned earlier than Selebi, the payment would trigger on Selkirk’s commission date. The
Selkirk APA provides for a three-year study phase originally expiring August 17, 2025, which has been extended for one year to August
17, 2026.

In
addition to the Selkirk purchase agreement, 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 an 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. The
contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.

NSR
Option

The
Company received $2,750,000 (the “Option Payment”) from Cymbria for their right to participate in the Company’s
right to repurchase one-half of the Selebi NSR and the entirety of the Selkirk NSR. Cymbria also has the right: (i) at any time following
the date of any buyback exercise notice from PNRP and/or PNGP and prior to the first anniversary of sale of product, to terminate the
option and receive from PNRP and/or PNGP a refund of the related option price paid by Cymbria; (ii) upon receipt from PNRP and/or PNGP
of any termination, settlement or waiver of the buyback right or royalty agreement and prior to the first anniversary of sale of product,
to exercise the option or terminate the option, and if terminated PNRP and/or PNGP shall refund the related option price paid by Cymbria;
(iii) to exercise the option and compel PNRP and/or PNGP to exercise the buyback right at