Financial Performance - The company incurred a net loss of $15,228,330 for the three months ended March 31, 2025, an increase of $5,881,150 compared to the prior year period, primarily due to a loss on the Term Loan extinguishment of $5,982,434 [199]. - As of March 31, 2025, the Company reported a net loss of $15,228,330, an increase from the net loss of $9,347,180 for the same period in 2024 [219]. - Total expenses for the three months ended March 31, 2025, were $15,228,330, with general exploration expenses decreasing by $578,682 due to a hold on drilling activities [203]. - The Company has not generated revenue and is dependent on external financing to fund its exploration and evaluation activities [209]. - The Company has a net foreign exchange loss of $251,425 for the three months ended March 31, 2025, compared to a loss of $66,014 in the prior year [203]. Capital and Financing - The Company closed a significant recapitalization on March 18, 2025, which included a $46.0 million non-brokered equity private placement and the equity conversion of a $20.9 million three-year term loan [142]. - Total assets as of March 31, 2025, increased by $38,827,996 from December 31, 2024, largely due to higher cash balances, following a Private Placement that raised aggregate gross proceeds of $46,000,000 [200]. - Cash and cash equivalents increased to $45,466,839 as of March 31, 2025, compared to $6,105,933 at the end of 2024 [210]. - Working capital as of March 31, 2025, was $39,434,623, up from $3,410,490 at the end of 2024, primarily due to cash proceeds from the Private Placement [210]. - The Company raised $46,000,000 through a Private Placement during the three months ended March 31, 2025, significantly increasing financing activities compared to the prior year [207]. Exploration and Development - The exploration and development strategy includes ongoing drilling programs at the Selebi Mines and Selkirk, with anticipated costs ranging from $5.9 million to $6.6 million until September 30, 2025 [152]. - The Selkirk Mineral Resource Estimate filed on January 31, 2025, provides a solid foundation for advancing the Selkirk deposit to an economic study [141]. - The Selebi Mines have an Indicated Mineral Resource of 3.00 million tonnes with grades of 0.90% Cu and 0.98% Ni, and an Inferred Mineral Resource of 24.72 million tonnes with grades of 1.50% Cu and 0.92% Ni [162]. - The ongoing Selebi North Underground Resource Expansion Drilling program is expected to continue throughout the year, focusing on further testing of BHEM plates [174]. - The company plans to conduct a surface drilling program at Selkirk in Q2 2025 to support metallurgical test work and an updated MRE through twinning of historic holes [184]. Management and Strategic Initiatives - The Company has strengthened its management team with the appointment of Morgan Lekstrom as the new CEO and the addition of strategic advisors [146]. - The Company is evaluating strategic opportunities to enhance the value of the Selkirk Mine through low-cost initiatives [143]. - The Company is advancing project economics through further metallurgical sampling and testing, with costs anticipated to be between $5.7 million and $6.4 million until September 30, 2025 [152]. - The Company has begun evaluating IDEON Technologies Inc. to apply Muon Tomography for creating 3D density maps of subsurface mineralization at both the Selebi Mines and Selkirk Mine [172]. Risks and Liabilities - The Company is subject to risks related to securing adequate capital for its projects and the volatility of global economic and metal prices [208]. - The Company has no material rehabilitation costs expected as of March 31, 2025, and no contingent liabilities anticipated that could impact financial performance [229]. - The estimated impact of a 5% change in USD and BWP against CAD on net loss before tax is a potential loss of US$125,808 for a +5% change in USD [247]. - The Company's liquidity risk is managed by monitoring cash flows against an annual budget, with total undiscounted contractual obligations amounting to US$7,436,251 as of March 31, 2025 [250]. Share Capital and Structure - The fully diluted share capital of the Company is 644,733,039 shares [252]. - Common Shares outstanding amount to 428,986,474 [252]. - The Company has 188,579,919 Warrants issued [252]. - There are 20,813,771 Stock Options available [252]. - The Company has 4,175,000 Restricted Stock Units (RSUs) outstanding [252]. - Preferred shares total 13,131, with a conversion ratio of 9:1 into Common Shares [252]. - The Company has 2,164,744 Deferred Share Units (DSUs) issued [252]. - The outstanding preferred shares include 118,186 that can be converted into Common Shares [252]. Other Financial Information - The Company has commitments for capital expenditures of $1,062,094 over the next 12 months [220]. - The Company extinguished a $20,882,353 Term Loan by converting it into equity, resulting in a loss on extinguishment of $5,982,434 [211]. - The Company paid interest of US$268,896 for the three months ended March 31, 2025, down from US$519,206 for the same period in 2024 [235]. - Exploration and evaluation expenditures for the Selebi Mines totaled $5,944,153 for the three months ended March 31, 2025, compared to $6,469,929 for the same period in 2024 [173]. - Total expenditures for the Selebi project for the three months ended March 31, 2025, were US$5,994,153, while Selkirk project expenditures were US$101,968 [238].
NexMetals Mining Corp(NEXM) - 2025 Q1 - Quarterly Report