Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 58

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 58
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Obligations and Contingencies

As
of June 30, 2025, the Company had commitments for capital expenditures over the next 12 months of $7,180 and the following other contractual
obligations and commitments:

Selebi
Mines

As
per the Selebi APA, the aggregate purchase price payable to the seller for the Selebi Mines is the sum of US$56,750,000 which amount
shall be paid in three instalments:

    ●
    US$1,750,000
    payable on the closing date. This payment has been made. The Company also made care and maintenance
    funding contributions in respect of the Selebi Mines from March 22, 2021, to the closing date of US$5,178,747.

    ●
    US$25,000,000
    upon the earlier of: (i) 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 licence and conversion of
    the mining licence into an operating licence, respectively); and (ii) January 31, 2026, the expiry date of the study phase.

    ●
    The
    third instalment of US$30,000,000 is payable on the completion of mine construction and production start-up by the Company on or
    before January 31, 2030, but not later than four years after the approval by the Minister of MMRGTES of the Company’s Section
    42 and Section 43 applications.

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. The Company’s accounting
policy is to measure and record contingent consideration when the conditions associated with the contingency are met. As of June 30,
2025, none of the conditions of the second and third instalments have been met, hence these amounts are not accrued in the Financial
Statements.

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
ag