Collective Mining announces $10 million bought deal

Share this article

Collective Mining Ltd. [CNL-TSXV, CNLMF-OTCQX] is raising $10 million from a bought deal financing, funds that will be used to advance the Guayabales Gold Project in Colombia and to pursue other exploration and development opportunities.

Collective said it has struck a deal with an underwriting syndicate which has agreed to purchase 4.44 million units of the company for $2.25 per unit on a bought deal basis. Each unit will consist of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase a common share at an exercise price of $3.25 for 18 months after the offering is completed.

The underwriters have been granted a green shoe option to purchase an additional 666,720 units, potentially adding another $1.5 million to the proceeds of the financing. That option remains open for 30 days after the closing date of the offering.

The offering is expected to close by October 25, 2022, subject to certain conditions, including the approval of the TSX Venture Exchange. The company said management and insiders will be participating in up to 15% of the offering.

Collective is an exploration and development company focused on identifying and exploring mineral projects in South America. It is funded by the team that developed and sold Continental Gold Inc. to Zijin Mining for $2 billion.

The company has said its mission is to repeat its past success in Colombia by making a significant new mineral discovery and advancing projects to production

On October 17, 2022, Collective Mining shares closed unchanged at $2.40. The shares are currently trading in a 52-week range of $4.07 and $2.35.

Collective said its management, insiders and close family and friends own nearly 45% of the outstanding shares of the company and as a result are fully aligned with shareholders.

The company currently owns a 100% interest in two projects in Colombia. Its flagship project is Guayabales, where seven major targets have been defined. The Main Breccia discovery within the Apollo target is the most important to date and is characterized by bulk tonnage, high-grade copper-silver-gold mineralization with highlight drill results including 207.15 metres of 2.68 g/y AuEq (gold equivalent), 265.75 metres at 2.44 g/t AuEq, and 237.7 metres at 2.88 g/t AuEq.

At the San Antonio project, drill crews intersected from surface 710 metres at 0.53 AuEq.

The company said its fully funded, 20,000-metre drill program for 2022 is ongoing with a significant number of assay results expected through the remainder of the year.


Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.