Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 18

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 18
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    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-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.

    12

Notes
to the Unaudited Condensed Interim Consolidated Financial Statements

For
the three and nine months ended September 30, 2025 and 2024

(Expressed
in Canadian dollars)

The
Company also negotiated a separate asset purchase agreement (the “Selkirk APA”) with the liquidator of Tati Nickel
Mining Company (“TNMC”) in January 2022 to acquire the Selkirk deposit and related infrastructure formerly operated