Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 229

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1B
Chunk 229
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 method based on
the relative fair value of each component of the unit (Common Shares and warrants). The fair value of the warrants is calculated using
the Black-Scholes Option Pricing Model.

Fort
Capital Partners acted as financial advisor to the Company on the equity portion of the 2023 Financing Transactions and was paid cash
fees of $812,460. Legal fees related to the 2023 Financing Transactions totaled $736,067, of which $240,596 was recorded as share issuance
cost.

The
fair value of the Transferable Warrants in connection with the February 2023 Financing and the 2023 Financing Transactions were calculated
using the following assumptions:

SCHEDULE
OF FAIR VALUE OF WARRANTS IN CONNECTION WITH FINANCING TRANSACTIONS

    February 24, 2023  
    June 28, 2023 
  
    Expected dividend yield 
     0% 
     0%
  
    Share price 
    $1.73  
    $1.35 
  
    Expected share price volatility 
     77.52% 
     92.06%
  
    Risk free interest rate 
     4.28% 
     4.13%
  
    Expected life of warrant 
     2 years  
     3 years 

    F-24

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

The
volatility was determined by calculating the historical volatility of stock prices of the Company over a period, being the expected life
of the Transferable Warrants, using daily closing prices. The formula used to compute historical volatility is the standard deviation
of the logarithmic returns.

On
December 14, 2023, the company closed an equity and debt financing package of $21,642,393, comprised of a brokered private placement
(the “Private Placement”) and amended Term Loan (Note 9). The Private
Placement was entered into by the Company with Cormark Securities Inc. and BMO Capital Markets, as co-lead agents, and Canaccord Genuity
Corp., Fort Capital Securities Ltd. and Paradigm Capital Inc. (collectively, the “Agents”). Under the Private Placement,
the Company issued an aggregate of 13,133,367 Common Shares at a price of $1.20 per Common Share for aggregate gross proceeds of $15,760,040.
In