Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 55

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 55
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 endeavors.

The
properties in which the Company currently has an interest are in the pre-revenue stage. Operating cash outflows are highly dependent
upon the exploration and evaluation programs taking place at that time. As such, the Company is dependent on external financing to fund
its activities and the advancement of its projects. In order to carry out the planned project advancement and cover administrative costs,
the Company will need to use its existing working capital and raise additional amounts as needed. Further, the second instalment under
the Selebi APA of $34,107,500 (US$25,000,000) is due January 31, 2026 (see “Contractual Obligations and Contingencies”),
which may require the Company to raise additional funding as the Company does not currently have sufficient funds to meet this obligation.

As
at June 30, 2025, the Company had $26,463,957 in available cash and cash equivalents (December 31, 2024 – $6,105,933),
with no source of operating cash flows, nor any significant credit lines in place. As at June 30, 2025, the Company had working
capital (calculated as total current assets less total current liabilities) of $23,875,340 (December 31, 2024 – $3,410,490).
The increase in working capital is a result of the cash proceeds received from the Private Placement.

Financings

2025

On
March 18, 2025, the Company closed a financing transaction which included a non-brokered private
placement and the conversion into equity of its $20,882,353 three-year Term Loan with Cymbria, the lender and an affiliate of
the Company’s largest shareholder, EdgePoint Investment Group Inc. (“EdgePoint”), which bore interest at a rate
of 10% per annum.

The
Company issued to Cymbria an aggregate of 3,480,392 units (each, a “Settlement Unit”) at a deemed issue price of $6.00
per Settlement Unit in full satisfaction of the $20,882,353 principal amount outstanding under the Term Loan. Accrued interest under
the Term Loan, up to the date of the Debt Conversion, in the amount of $268,896 was settled in cash. Each Settlement Unit consisted of
one Common Share of the Company and one Common Share purchase warrant (each, a “Settlement Warrant”) of the Company.

Each