Collective Mining Announces Investment and Early Exercise of Warrants by Agnico Eagle for Gross Proceeds of C$63.4 Million

Rhea-AI Summary

Collective Mining (NYSE: CNL) has secured a significant investment from Agnico Eagle Mines through two transactions totaling C$63.4 million. The deal includes Agnico Eagle's subscription for 4,741,984 common shares at C$11.00 per share, and the early exercise of warrants to acquire 2,250,000 additional shares at C$5.01 per share.

Upon closing, Agnico Eagle's ownership stake in Collective Mining will increase to approximately 14.99%. The proceeds will fund exploration activities at the Company's Guayabales Project in Colombia and general working capital needs. The transaction's completion is subject to regulatory approvals from the Toronto Stock Exchange and NYSE American.

Positive

• Secured substantial C$63.4 million investment from major mining company Agnico Eagle
• Strategic investor increasing ownership to 14.99%, showing confidence in the company
• Strengthened cash position for continued exploration activities

Negative

• Share dilution from new share issuance and warrant exercise

TORONTO, March 14, 2025 /PRNewswire/ - Collective Mining Ltd. (NYSE: CNL) (TSX: CNL) ("Collective" or the "Company") is pleased to announce that it has entered into an agreement with Agnico Eagle Mines Limited ("Agnico Eagle") pursuant to which Agnico Eagle has agreed to subscribe for 4,741,984 common shares in the capital of the Company (the "Shares") at a price of C$11.00 per Share (the "Offering"). Closing of the Offering is conditional upon, among other things, Agnico Eagle concurrently exercising the common share purchase warrants of the Company (the "Warrants") it currently holds to acquire an additional 2,250,000 Shares at a price of C$5.01 per Share. In total, between the Offering and the exercise of the Warrants, the Company will receive gross proceeds of approximately $63.4 million. At Closing of the Offering, Agnico Eagle's ownership interest in the Shares is expected to increase to approximately 14.99%.

Ari Sussman, Executive Chairman commented: "I would like to thank Agnico Eagle for its additional support as we continue to advance our Guayabales Project.  The proceeds received will enable us to continue with our planned drill program and we look forward to releasing results in the near term."

The proceeds from the Offering and exercise of the Warrants are expected to be used for exploration on the Company's properties in Colombia and for general working capital purposes. Closing of the Offering is also subject to, among other things, the receipt of regulatory approvals, including approval of the Toronto Stock Exchange and acceptance by NYSE American, and is expected to close two business days following receipt of such approval.

About Collective Mining Ltd.

To see our latest corporate presentation and related information, please visit www.collectivemining.com.

Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value, Collective is a gold, silver, copper and tungsten exploration company with projects in Caldas, Colombia. The Company has options to acquire 100% interests in two projects located directly within an established mining camp with ten fully permitted and operating mines. 

The Company's flagship project, Guayabales, is anchored by the Apollo system, which hosts the large-scale, bulk-tonnage and high-grade gold-silver-copper-tungsten Apollo system. The Company's objectives are to improve the overall grade of the Apollo system by systematically drill testing newly modeled potentially high-grade sub-zones, expand the Apollo system by stepping out along strike to the north and expanding the newly discovered high-grade Ramp Zone along strike and to depth, expand the Trap system and drill a series of newly generated targets including Tower and X. 

Management and insiders own approximately 36% of the outstanding shares of the Company and as a result, are fully aligned with shareholders. The Company is listed on the NYSE American and TSX under the trading symbol "CNL" and on the FSE under the trading symbol "GG1". 

Information Contact:

Follow Executive Chairman Ari Sussman (@Ariski73) on X

Follow Collective Mining (@CollectiveMini1) on X, (Collective Mining) on LinkedIn, and (@collectivemining) on Instagram

FORWARD-LOOKING STATEMENTS 

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always using phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: statements with respect to the proposed Offering and exercise of Warrants; anticipated use of proceeds from the Offering and the exercise of Warrants; receipt of regulatory approvals and other conditions to closing of the Offering, the anticipated advancement of mineral properties or programs; future operations; future recovery metal recovery rates; future growth potential of Collective; and future development plans.

These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events including the direction of our business. Management believes that these assumptions are reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: completion of the Offering and exercise of the Warrants on the terms stated or at all, receipt of all regulatory approvals, planed use of proceeds from the Offering and the exercise of the Warrants; risks related to the speculative nature of the Company's business; the Company's formative stage of development; the Company's financial position; possible variations in mineralization, grade or recovery rates; actual results of current exploration activities; conclusions of future economic evaluations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, precious and base metals or certain other commodities; fluctuations in currency markets; change in national and local government, legislation, taxation, controls regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formation pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties, as well as those risk factors discussed or referred to in the annual information form of the Company dated March 27, 2024. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and there may be other factors that cause results not to be anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements.

View original content:https://www.prnewswire.com/news-releases/collective-mining-announces-investment-and-early-exercise-of-warrants-by-agnico-eagle-for-gross-proceeds-of-c63-4-million-302401773.html

SOURCE Collective Mining Ltd.

FAQ

How much is Agnico Eagle investing in Collective Mining (CNL) through the March 2025 deal?

Agnico Eagle is investing C$63.4 million through a C$11.00 per share offering and warrant exercise at C$5.01 per share.

What will be Agnico Eagle's ownership percentage in Collective Mining (CNL) after the investment?

After the investment closes, Agnico Eagle will own approximately 14.99% of Collective Mining.

How will Collective Mining (CNL) use the C$63.4 million proceeds?

The proceeds will fund exploration activities at the Guayabales Project in Colombia and general working capital purposes.

What regulatory approvals does Collective Mining (CNL) need for the Agnico Eagle investment?

The investment requires approval from the Toronto Stock Exchange and acceptance by NYSE American.