Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 84

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 84
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402,981 
  
    Accretion of warrant value and transaction costs 
     42,581 
  
    Interest paid 
     (402,981)
  
    Term Loan balance, December 31, 2023 
     17,956,423 
  
    Accrued interest 
     2,082,530 
  
    Accretion of warrant value and transaction costs 
     1,026,789 
  
    Interest paid 
     (2,082,530)
  
    Term Loan balance, December 31, 2024 
     18,983,212 

 Fort Capital Partners acted as financial advisor to the Company on the debt portion of the 2023 Financing Transactions and was paid cash fees of $375,000 and $147,059, equal to 2.5% of the original principal amount and the Additional Principal Amount, respectively. Legal fees related to the 2023 Financing Transactions totaled $736,067, of which $495,471 was allocated to the original Term Loan. Legal fees of $72,153 associated with the Term Loan amendment were recorded and amortized over the remaining terms of the Term Loan. As noted above, certain transaction costs in relation to the original principal amounts were allocated to the Non-Transferrable Warrants based on the relative fair value method under ASC 470 - Debt.

10. NSR
OPTION

Concurrently
with the closings of the Equity Financing and the Term Loan on June 28, 2023, Cymbria paid an aggregate of $2,750,000 (“Option
Payment”) to two subsidiaries of PREM to acquire a right to participate with such subsidiaries in the exercise of certain contractual
rights. The Option Payment was allocated to PNRP and PNGP (defined below) for $2,500,000 and $250,000, respectively.

As
the NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair
value of the call and put on the options as at December 31, 2024 and December 31, 2023 is nil. The Option payment received in cash was
recorded as a non-current liability.

PREM’s
indirect wholly-owned subsidiary Premium Nickel Resources Proprietary Limited (“PNRP”) acquired the Selebi Mines in
January 2022 out of liquidation. Pursuant to the acquisition agreement, the liquidator retained a 2%
net