#Canada #Toronto #Collective Mining #Agnico Eagle #gold exploration

Agnico Eagle's Strategic Investment in Collective Mining Ltd.

Agnico Eagle Mines Limited has recently declared a pivotal investment in Collective Mining Ltd., marking a significant step towards expanding its footprint in gold exploration. The company has agreed to subscribe for 4,741,984 common shares of Collective Mining, facilitating a non-brokered private placement at an approximate price of C$11.00 per share. This substantial investment totals around C$52,161,824, set to close around March 20, 2025, subject to specific conditions.

With this strategic move, Agnico Eagle is not just enhancing its portfolio but also focusing on promising internal growth projects and acquiring potential opportunities that boast high geological significance. The investment in Collective allows exposure to early-stage gold exploration within a historical mining region of Colombia, driven by a team renowned for their proven record in the sector. Agnico Eagle believes that this investment aligns perfectly with its ongoing evaluation of the project's robust geological potential and favorable jurisdiction.

Currently, Agnico Eagle holds 5,726,235 common shares and 2,250,000 warrants of Collective Mining. Following the private placement and warrant exercise, Agnico Eagle's ownership will increase to 12,718,219 common shares, representing about 14.99% of the total outstanding shares on a non-diluted basis. This gives them a stronger position within the company and allows greater influence on its future trajectory.

In conjunction with its initial commitment to Collective Mining last February, an investor rights agreement has been established, which allows Agnico to maintain certain ownership stakes, affording them participation rights in future equity financing. Furthermore, the amended agreement will boost their participation ceiling from 9.99% to 14.99%, correlating with the expected ownership after completing this latest investment round.

The foresight of Agnico Eagle as they proceed with this investment reflects a meticulous approach towards enhancing their resource portfolio. The company is set to potentially acquire more common shares contingent upon market circumstances and other external factors post-closing. It is also essential to highlight that an early warning report will be filed following applicable regulations, ensuring transparency about this investment strategy.

Agnico Eagle, recognized globally as a leading mining entity established in 1957, and known for its sustainability practices, continues to declare value for its shareholders year after year. The strategic acquisition of shares in Collective Mining reinforces their commitment to responsibly expand their influential position in the burgeoning gold mining landscape while uncovering new opportunities for value creation.

In conclusion, Agnico Eagle's significant investment in Collective Mining represents not just an expansion strategy but also a step forward in maintaining its stature as a key player in the global mining industry, paving the way for long-term growth and innovation in a challenging market environment. This investment aligns with Agnico Eagle’s objective to leverage promising opportunities in geologically rich regions, ensuring a poised approach towards future exploration and development in the mining sector.