Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 65

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 65
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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 any time within the first nine months immediately following the first anniversary of sale of product and not less
than 60 days prior to the date of exercise of the buyback right; and (iv) to require PNRP and/or PNGP to repurchase the option from Cymbria
for an amount equal to the option price at any time commencing on the first anniversary of sale of product, provided PNRP and/or PNGP
have not provided a buyback exercise notice or notice of any termination, settlement or waiver of the buyback right or royalty agreement
to Cymbria.

Contingencies

There are no environmental liabilities associated
with the Mines as at the acquisition dates as all liabilities incurred prior to the acquisitions are the responsibility of the sellers,
BCL and Tati Nickel Mining Company (“TNMC”). The Company has an obligation for the rehabilitation costs arising subsequent
to the acquisitions. As of March 31, 202