Financial Position and Capitalization - The Company completed a significant recapitalization on March 18, 2025, which included a $46.0 million non-brokered equity private placement and the conversion of a $20.9 million term loan, enhancing its financial position[142]. - A non-binding letter of interest from the Export-Import Bank of the United States indicates potential financing of up to $150 million for the redevelopment of the Company's Mines[144]. - The Company announced a brokered public offering on October 28, 2025, with an upsized offering of 14,035,100 units at $5.70 per unit, aiming for gross proceeds of up to $80 million[144]. - The Company plans to use the net proceeds from a public offering to fund exploration and development activities at the Mines, with gross proceeds expected to be up to $80,000,070[209]. - The Company had $14,117,843 in cash and cash equivalents as of September 30, 2025, up from $6,105,933 at the end of 2024[208]. Exploration and Resource Development - The Selkirk Mineral Resource Estimate (MRE) filed on January 31, 2025, supports advancing the Selkirk deposit to an economic study, with a focus on high-quality Cu-Ni-Co-PGE resources[141]. - The Company is executing an exploration drilling program at the Selebi Mines, with anticipated costs for exploration and development ranging from $1.9 million to $2.5 million by December 31, 2025[147]. - The Selebi Mines have an Indicated Mineral Resource of 3.00 million tonnes at 0.90% Cu and 0.98% Ni, and an Inferred Mineral Resource of 24.72 million tonnes at 1.50% Cu and 0.92% Ni[156]. - The Selebi North Underground Resource Expansion Drilling program has drilled approximately 8,173 metres in 14 holes, with assays for about 41,189 metres across 91 completed holes not included in the 2024 Selebi Mines MRE[161]. - Drill hole SNUG-25-186 extended South Limb mineralization by 315 metres down-plunge, representing a 35% increase beyond the 2024 Selebi Mines MRE[159]. - The Selebi Hinge drilling program has completed 9,014 metres, with two completed holes and four currently in progress, aimed at demonstrating broader scale potential[166]. - A total of 3,903 metres were drilled in a 12-hole surface drilling program at Selkirk, with highlights including 201 metres of 0.91% CuEq and 210 metres of 1.06% CuEq[182]. - The Company is focusing on advancing metallurgical testwork and preparing an updated Mineral Resource Estimate (MRE) following the completion of its 2025 drilling programs[191]. - A Preliminary Economic Assessment for the Selebi Mines is underway, focusing on mine design, process engineering, and capital cost estimation[170]. Financial Performance and Expenditures - The Company has incurred $8,465,855 in exploration and evaluation expenditures for the three months ended September 30, 2025, compared to $7,988,816 for the same period in 2024[172]. - For the three months ended September 30, 2025, the Company incurred exploration and evaluation expenditures of $2,084,888, a significant increase from $606,725 in the same period of 2024[189]. - General exploration expenses rose to $10,658,319 for the three months ended September 30, 2025, compared to $8,628,426 in 2024, reflecting an increase of $2,029,893[200]. - The net loss for the nine months ended September 30, 2025, was $46,321,544, up from $31,145,332 in the same period of 2024, indicating a year-over-year increase of 48.7%[200]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $(35,106,741), an increase of $8,439,102 compared to $(26,667,639) in 2024[202]. - The Company incurred a net loss of $16,004,468 for the three months and $46,321,544 for the nine months ended September 30, 2025, compared to a net loss of $12,004,960 and $31,145,332 for the same periods in 2024[214]. - Total expenditures for the three months ended September 30, 2025, amounted to $10,658,319, with drilling costs at $2,309,664[226]. - For the nine months ended September 30, 2025, total expenditures reached $27,131,192, with drilling costs at $6,731,474[227]. Corporate Governance and Strategic Direction - The Company adopted a new long-term omnibus incentive plan on June 3, 2025, replacing previous stock option and share unit plans[144]. - The Company changed its name from "Premium Resources Ltd." to "NexMetals Mining Corp." on June 9, 2025, and began trading under the new symbol "NEXM" on June 11, 2025[144]. - Investor relations and communications expenses increased by $1,641,848 for the three months ended September 30, 2025, due to efforts to enhance market awareness of the Company's new strategic direction[201]. Risk Management and Accounting - The Company has not generated profitable operations from its resource activities to date, raising substantial doubt about its ability to continue as a going concern[214]. - The Company has the option to cancel milestone payments for the Selebi Mines if deemed uneconomical, with no conditions met for the remaining milestone payments as of September 30, 2025[216]. - The Company has provisioned $140,000 for remediation work at the Maniitsoq Nickel-Copper-PGM Project for the nine months ended September 30, 2025[198]. - The Company holds a 100% interest in the Halcyon property and is obligated to pay $8,000 per annum in net smelter return advances[195]. - As of September 30, 2025, the Company had commitments for capital expenditures of $156,650 and outstanding milestone payments of $25,000,000 and $30,000,000 related to the Selebi APA[215]. - The Company has a royalty obligation of 5% on precious metals sales and 3% on base metals sales to the Botswana Government[218]. - The fair value of the NSR option liability is $2,750,000 as of September 30, 2025[229]. - A one percentage point change in interest rates would result in a $16,967 change in annual interest expense for the Company[233]. - A 5% increase in USD would result in a net loss before tax of $89,376, while a 5% increase in BWP would lead to a net loss before tax of $86,344[235]. - The company manages liquidity risk by regularly monitoring cash flows against its budget and deferring discretionary expenditures as needed[237]. - There have been no significant changes to critical accounting estimates and judgments since the last annual report, except for debt extinguishment accounting[239]. - The company adopted ASU 2023-09 on income tax disclosures effective January 1, 2025, which will require additional disclosures in the financial statements[240]. - ASU 2024-03, effective January 1, 2027, will require disaggregated disclosures of specified expense categories, and the company is currently assessing its impact[241]. - The company's credit risk is primarily associated with cash and cash equivalents, limited to the carrying value of these instruments[236]. - The company evaluates its accounting estimates based on historical experience and known trends, with actual results potentially differing under different conditions[238]. - Market risk disclosures have been omitted as permitted under rules applicable to smaller reporting companies[242].
NexMetals Mining Corp(NEXM) - 2025 Q3 - Quarterly Report