Agnico-Eagle triggers $63.4 million investment in Collective Mining
Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) said it has agreed to subscribe for 4.74 million shares of Collective Mining Ltd. [CNL-TSX, CNL-NYSE] in a non-brokered private placement priced at $11 per common share, valuing the investment at $52.1 million.
Concurrent with the private placement, Agnico-Eagle will exercise all of the common share purchase warrants of Collective Mining that it currently holds, to acquire an additional 2.25 million common shares priced at $5.01 per share for an aggregate consideration of $11.3 million.
Agnico currently owns 5.7 million shares and 2.25 million warrants. Upon closing of the private placement and exercise of warrants, Agnico will own 12.7 million common shares and zero warrants, representing approximately 14.99% of the issued and outstanding shares on a non-diluted basis.
Collective Mining shares advanced on the news, rising 1.65% or 20 cents to $12.26. The shares are currently trading in a 52-week range of $12.20 and $3.02.
Founded by a team that developed and sold Continental Gold Inc. to Zijin Mining for $2.0 million, 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 Guayabales project is anchored by the Apollo system, which holds a large scale, bulk tonnage and high-grade gold-silver copper-tungsten Apollo System.
The company was in the news last year when it announced the discovery of a significant new gold system named “Olympus Deeps’’ at Guayabales.
It said the Olympus target is similar to the multi-million-ounce Marmato mine located 2.5 kilometres to the southeast, which spans more than a vertical kilometre and is characterized by an upper-level sheeted vein system with a porphyry at depth.
In a press release on March 12, 2025, Collective announced assay results from two drill holes designed to expand the dimensions of the new Ramp Zone discovery. Ramp is located in the deepest portion of the Apollo system, the flagship discovery within the multi-target Guayabales project. The Ramp Zone is a bonifide new discovery characterized by high-grade gold associated with minor amounts of bismuth and tellurium and shares similar characteristics with the multi-million ounce Marmato Deeps deposit located only 1.75 kilometres to the southeast.
Agnico said the investment in Collective Mining provides Agnico with exposure to an early- stage gold exploration project in Colombia, led by a team with a proven track record, in a region with a long history of mining. With this investment, Angico-Eagle continues to assess the project’s strong geological potential, as well as the jurisdiction, the company said in a press release.