Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 72

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 72
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 concentrate or other materials
with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full (Note 10). The contingent
consideration agreement is on similar terms as the Selebi Mines contingent consideration.

In
August 2023, the Company entered into a binding commitment letter with the liquidator of BCL, which is subject to customary closing conditions,
to acquire a 100% interest in two additional deposits (“Phikwe South” and the “Southeast Extension”)
located adjacent to and immediately north of the Selebi North shaft. The impact is to increase the Selebi mining licence area. While
the remaining historic resources at Phikwe South and the Southeast Extension occur within the expanded Selebi mining licence, the amended
licence intentionally does not include the historic mine workings and infrastructure at these previously-producing properties, and the
Company has no liability for historic environmental issues at those sites.

The
upfront cost to the Company to acquire these additional mineral properties is $1,438,900 (US$1,000,000). In addition, the Company agreed
to additional work commitments of $7,194,500 (US$5,000,000) in the aggregate over four years. As a result of the expansion of the Selebi
mining licence, the remaining asset purchase obligations of the Company outlined in the original Selebi APA with the liquidator will
each increase by 10%, or $7,913,950 (US$5,500,000) in total, while the trigger events remain unchanged. The existing 2% NSR and contingent
consideration agreement held by the liquidator with respect to production from the Selebi mining licence will also apply to production
from these additional deposits, subject to the Company’s existing buy-back right for 50% of the NSR (Note 10). The Company incurred
$483,883 for care and maintenance during the investigation period of the properties in 2023, which has been added to the acquisition
cost of the Selebi Mines. The acquisition of the Phikwe South and the Southeast Extension deposits has not yet closed as at March 19,
2025.

Both
the Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and
3% of all base metals sales.

    F-17

Notes
to the Consolidated Financial Statements

For
the years ended December 31