Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 96

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 96
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). 

    ●
    $34,802,500 (US$25,000,000)
    payable upon the approval by the Botswana Ministry of Mineral Resources, Green Technology and Energy Security (“MMRGTES”)
    of the Company’s Section 42 and Section 43 applications (for the further extension of the mining license and amendment of mining
    programme, respectively) which are to be submitted in March 2026 and require a compliant economic study.

    ●
    $41,763,000 (US$30,000,000)
    payable on the completion of mine construction and production start-up (commissioning) by the Company, but not later than four years
    after the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications.

The
total acquisition cost of the Selebi Mines included the first instalment of $2,086,830 (US$1,750,000) and the payment of the care and
maintenance funding contribution of $6,164,688 (US$5,178,747). As per the terms and conditions of the Selebi APA, the Company has the
option to cancel the second and third payments and return the Selebi Mines to the liquidator if the Company determines that the Selebi
Mines are not economical. The Company also has an option to pay in advance the second and third payments if the Company determines that
the Selebi Mines are economical.

In
addition to the Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent consideration
agreement with the liquidator. The royalty agreement consists of a net smelter returns royalty (the “Selebi NSR”)
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% (Note 10). 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; and (ii) price participation of 15% on post