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Collective Mining Secures Significant Funding

Collective Mining Ltd. (NYSE: CNL), a prominent exploration company focused on gold, silver, copper, and tungsten, has achieved a pivotal milestone in its growth strategy. On March 20, 2025, the company announced the successful closing of an investment from Agnico Eagle Mines Limited, totaling C$63.4 million. This financial boost is expected to greatly enhance Collective Mining’s exploration efforts in Colombia, particularly within their project areas.

Details of the Investment

Agnico Eagle has purchased approximately 4,741,984 common shares at a price of C$11.00 per share, amounting to roughly C$52.1 million. In addition to this investment, Agnico Eagle exercised its warrants to acquire an additional 2,250,000 shares at C$5.01 per share, providing C$11.27 million in proceeds. Following these transactions, Agnico Eagle’s ownership stake in Collective Mining increased to approximately 14.99%.

The funds raised are poised for use in expanding exploration activities across Collective Mining’s properties in Colombia, enhancing their operational capabilities and advancing their projects. This move not only strengthens the company's financial position but also underscores Agnico Eagle’s commitment to becoming a significant partner in the mining sector.

Strategic Importance of the Arrangement

This investment is particularly significant as it follows Agnico Eagle’s initial engagement in February 2024, which included an investor rights agreement. This agreement provides Agnico Eagle certain privileges, ensuring that their ownership in Collective Mining can keep pace with future equity financings. Specifically, this allows Agnico to maintain its ownership level through future offerings, potentially increasing their influence on corporate governance.

Agnico Eagle has also been granted the right to nominate individuals to the board of directors, reflecting a deeper strategic alliance between the two firms. This collaboration is indicative of the growing trend in the mining sector where partnerships are instrumental in driving exploration and development forward, especially in regions like Colombia, known for its rich mineral resources.

About Collective Mining

Founded by the team that successfully developed Continental Gold Inc., which was sold for approximately $2 billion, Collective Mining Ltd. is uniquely positioned in the mining landscape. The company’s flagship project, Guayabales, is integrated into one of Colombia’s established mining camps, surrounded by fully operational mines. The Apollo system within Guayabales is a key asset, hosting multiple high-grade mineral zones.

With a clear focus on improving the grade of existing resources, Collective Mining plans to utilize this influx of capital to enhance drill testing on newly modeled zones and expand their mining outputs systematically. The future growth potential looks promising as management insiders currently hold about 33.4% of the company, aligning their interests strongly with those of other shareholders.

Conclusion

Collective Mining’s recent financial maneuvers signal confidence in its exploration capabilities and underscore the attractiveness of its Colombian operations to major industry players. As the company continues to advance its projects with the backing of Agnico Eagle, it is poised for notable expansions and increased shareholder value. Investors will be eager to see how these developments unfold in the coming periods as both companies leverage their strengths in the dynamic mining sector.

For more information about Collective Mining, visit www.collectivemining.com.