Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 74

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 74
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 royalty agreement consists of a net smelter royalty of 2% on the net value of sales of concentrate
or other materials with respect to production from the Selebi mining licence, of which the Company has the right to buy-back 50%. The
contingent consideration agreement consists of two components: (i) a sliding scale payment of US$0.50/tonne of ore up to US$1.40/tonne
of ore with respect to the discovery of new mineable deposits greater than 25 million tonnes of ore from a base case of 15.9 million
tonnes, with a minimum grade of 2.5% nickel equivalent, accrued at the time of a decision to mine; (ii) price participation of 15% on
post-tax net earnings directly attributable to an increase of 25% or more in commodity prices, on a quarterly basis, for a period of
seven years from the date of first shipment of concentrate or other materials.

Both
the Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and
3% of all base metals sales.

Phikwe
South and the Southeast Extension

In
August 2023, the Company entered into a binding commitment letter with the liquidator of BCL 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 historical workings.
The agreement has since lapsed and on August 11, 2025, the Company informed the liquidator of BCL that it would no longer be pursuing
the acquisition of the Phikwe South and the Southeast Extension deposits.

Selkirk
Mine

In
regard to the 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 Selk