Collective Mining increases bought deal financing to C$125 million to advance Guayabales Project, Colombia
Collective Mining Ltd. [NYSE: CNL; TSX: CNL] reported that due to strong demand, it has increased the size of the previously announced bought deal of common shares to 6,600,000 common shares at a price of C$19.00 per Common Share (the Issue Price) for gross proceeds of approximately C$125 million (the Offering).
The company previously entered into an agreement with BMO Capital Markets and Scotiabank as joint bookrunners on behalf of a syndicate of underwriters (collectively, the Underwriters). The company has granted the Underwriters an option (the Over-allotment Option), exercisable in whole or in part, to purchase up to an additional 990,000 Common Shares for 30 days from and including the closing date of the Offering to cover over-allotments, if any, and for market stabilization purposes.
The Underwriters shall be under no obligation to exercise the Over-allotment Option in whole or in part. If the Over-allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be approximately C$144 million. The Offering is expected to close on or about October 8, 2025 and is subject to receiving regulatory approvals.
The company intends to use the net proceeds from the Offering to fund ongoing work programs to advance the Guayabales Project, Colombia, to pursue other exploration and development opportunities, and for working capital and general corporate purposes.
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% interest 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 at the Guayabales Project are to expand the newly discovered high-grade Ramp Zone along strike and to depth and drill a series of greenfield generated targets on the property.
Additionally, the company has launched its largest drilling campaign in history at the San Antonio Project as it hunts for new discoveries and looks to expand upon the newly discovered porphyry system at the Pound target. The San Antonio Project is located between two to five km east-northeast of the Guayabales Project and could potentially share infrastructure given their close proximity to each other.
Management, insiders, a strategic investor and close family and friends own 44.5% of the outstanding shares of the company and as a result, are fully aligned with shareholders.