Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 2

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 2
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 be unable to continue as a
going concern. These adjustments could be material.

    10

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and six months ended June 30, 2025 and 2024

(Expressed in Canadian dollars)

The
properties in which the Company currently has an interest are in pre-revenue stage. As such, the Company is dependent on external financing
to fund its activities. In order to carry out the planned activities and cover administrative costs, the Company will use its existing
working capital and raise additional amounts as needed. Further, the second instalment under the Selebi APA (defined in Note 5) of $34,107,500
(US$25,000,000) is due January 31, 2026, which may require the Company to raise additional funding as the Company does not currently
have sufficient funds to meet this obligation.

On
March 18, 2025, the Company closed a significant refinancing (Note 8 and Note 10(a)). While this transaction will provide sufficient
capital for the Company to fund operations in the near term, the Company will need further funding to support advancement of the Selebi
Mines and the Selkirk Mine toward the development stage.

Although
the Company has been successful in its past fundraising activities, there is no assurance as to the success of future fundraising efforts
or as to the sufficiency of funds raised in the future.

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES 

 (a) Statement of Compliance

These
unaudited condensed interim consolidated financial statements reflect the accounts of the Company and have been prepared in accordance
with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information
and in accordance with the instructions in Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the
“SEC”).

Certain
information or footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed
or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the
information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion
of management, the accompanying unaudited condensed interim consolidated financial statements include all adjustments, consisting of
a normal recurring nature, which are necessary for a fair presentation