Company: PRMLF
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-010011
Chunk: 98

Company: NexMetals Mining Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 2
Chunk 98
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 pre-revenue stage. Operating cash outflows are highly dependent upon the exploration and evaluation programs taking
place at that time. As such, the Company is dependent on external financing to fund its activities and the advancement of its projects.
In order to carry out the planned project advancement and cover administrative costs, the Company will need to use its existing working
capital and raise additional amounts as needed.

As at March 31, 2025, the Company had $45,466,839
in available cash (December 31, 2024 – $6,105,933), with no source of operating cash
flows, and no significant credit lines in place. As at March 31, 2025, the Company had working capital (calculated as total current assets
less total current liabilities) of $39,434,623 (December 31, 2024 – $3,410,490). The
increase in working capital is a result of the cash proceeds received from the Private Placement.

Financings

2025

On March 18, 2025, the Company closed a financing
transaction which included a non-brokered private placement and the conversion into
equity of its $20,882,353 three-year Term Loan with Cymbria, the lender and an affiliate of the Company’s largest shareholder,
EdgePoint Investment Group Inc. (“EdgePoint”), which bore interest at a rate of 10% per annum.

The Company issued to Cymbria an aggregate of 69,607,843
units (each, a “Settlement Unit”) at a deemed issue price of $0.30 per Settlement Unit in full satisfaction of the
$20,882,353 principal amount outstanding under the Term Loan. Accrued interest under the Term Loan, up to the date of the Debt Conversion,
in the amount of $268,896 was settled in cash. Each Settlement Unit consisted of one Common Share of the Company and one Common Share
purchase warrant (each, a “Settlement Warrant”) of the Company.

Each Settlement Warrant entitles the holder to acquire
one additional Common Share of the Company at a price of $0.40 per Common Share until March 18, 2028. If, at any time prior to the expiry date, the volume-weighted average trading
price of the Common Shares is at least $2.00 per Common Share for a period of 20 trading days, the Company may, at its option, accelerate
the expiry date with