Agnico Eagle Takes 14.99% Stake In Collective Mining With $63.4 Million Investment
Collective Mining (TSX: CNL) has managed to secure a substantial investment from Agnico Eagle Mines (TSX: AEM). The investment will see the major producer acquire units of the explorer, while simultaneously exercising warrants it currently holds in the company.
Under the terms of the investment agreement, Agnico is set to purchase 4.7 million shares of Collective Mining, at a price of $11.00 per share. The pricing terms represents a slight discount to the closing price of Collective Mining on Thursday, which was $11.16 on the TSX.
At the same time, Agnico is set to exercise 2.3 million common share purchase warrants it currently holds, which contain an exercise price of $5.01 per share. In total, the transactions amount to gross proceeds of $63.4 million, which will increase Agnico’s ownership in Collective Mining to 14.99%.
Previously, Agnico held a 9.99% interest in the explorer. The company was previously referred to as a “strategic investor,” with its name being withheld from public release. Agnico’s initial investment in Collective occurred back in February 2024, as part of a $18.9 million investment.
Proceeds from the financing are expected to be used for exploration of Collective Mining’s properties in Colombia as well as for general working capital purposes.
Collective Mining last traded at $11.16 on the TSX.
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