Collective Announces Closing of $10.7 Million Bought Deal Financing
Collective Announces Closing of $10.7 Million Bought Deal Financing
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO
UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
TORONTO, Oct. 25, 2022 (GLOBE NEWSWIRE) -- Collective Mining Ltd. (TSXV: CNL) (OTCQX: CNLMF) (“Collective” or the
“Company”) is pleased to announce that is has closed its previously announced “bought deal” offering of units of the Company (the “Units”)
for aggregate gross proceeds of approximately $10.7 million (the “Offering”). The Offering was conducted by a syndicate of underwriters
led by Clarus Securities Inc., and including BMO Nesbitt Burns Inc. and TD Securities Inc. (collectively, the “Underwriters”), and consisted
of the sale of 4,783,400 Units (including the partial exercise of the over-allotment option) at a price of $2.25 per Unit.
Each Unit was comprised of one common share in the capital of the Company ( “Common Share”) and one-half of one Common Share
purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one
Common Share at a price of $3.25 until April 25, 2024.
The net proceeds from the Offering are expected to be used to fund the Company’s recommended stage two exploration programme at its
Guayabales Project, and for other general corporate purposes, as more fully described in the prospectus supplement (the “Prospectus
Supplement”) of the Company dated October 19, 2022.
The securities issued pursuant to the Offering were qualified for distribution pursuant to the Prospectus Supplement and a short form base
shelf prospectus (the “Base Shelf Prospectus ”) dated November 9, 2021, filed in each of the provinces and territories of Canada, other
than Quebec, and offered and sold elsewhere outside of Canada on a private placement basis. The Prospectus Supplement, Base Shelf
Prospectus, and the documents incorporated by reference therein, are available on the Company ’s issuer profile on SEDAR at
www.sedar.com.
In connection with the completion of the Offering, the Underwriters received a cash commission of approximately $554,000.
Certain directors, management and significant shareholders of the Company (the “Insiders”) purchased an aggregate of 773,500 Units
pursuant to the Offering. Participation by the Insiders in the Offering was considered a “related party transaction” pursuant to Multilateral
Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company was exempt from the
requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders’ participation in the Offering in
reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report in connection with the participation of Insiders in the Offering
will be filed less than 21 days in advance of the closing of the Offering, which the Company deemed reasonable in the circumstances so as
to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the
account or benefit of, “U.S. Persons” (as such term is defined in Regulation S under the U.S. Securities Act) absent such registration or an
applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release
does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities
in the United States must be made by means of a prospectus containing detailed information about the company and management, as well
as financial statements.
About Collective Mining Ltd.
To see our latest corporate presentation and related information, please visit www.collectivemining.com.
Collective Mining is an exploration and development company focused on identifying and exploring prospective mineral projects in South
America. Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value,
the mission of the Company is to repeat its past success in Colombia by making significant new mineral discoveries and advance the
projects to production. 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 holds an option to earn up to a 100% interest in two projects located in Colombia. As a result of an aggressive
exploration program at its flagship Guayabales project, a total of 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 @ 2.68g g/t AuEq, 265.75 metres at 2.44 g/t AuEq and 237.7 metres at 2.88 g/t AuEq. Other
grassroots discoveries include near-surface discovery holes yielding 301.9 metres at 1.11 g/t AuEq at the Olympus target, 163 metres at
1.33 g/t AuEq at the Donut target, and 102.2m @ 1.53 g/t AuEq at the Trap target. At the San Antonio project, the Company intersected,
from surface, 710 metres at 0.53 AuEq. (See related press releases on our website for AuEq calculations and our press releases dated
August 10, September 13, and October 6, 2022, respectively, for previously announced intercepts.). The Company’s 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.
Qualified Person (QP) and NI 43-101 Disclosure
David J Reading is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects and has reviewed and verified that the technical information contained herein is accurate and approves of
the written disclosure of same. Mr. Reading has an MSc in Economic Geology and is a Fellow of the Institute of Materials, Minerals and
Mining and of the Society of Economic Geology (SEG).
Contact Information
Collective Mining Ltd.
Steven Gold, Vice President, Corporate Development and Investor Relations
Tel. (416) 648-4065
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within
the meaning of the applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, are forward-
looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that
involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or
performance (often, but not always using phrases such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be
forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the anticipated use of the net
proceeds from the Offering therefrom; anticipated advancement of mineral properties or programs; future operations; future growth potential
of Collective; and future development plans.
These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current
judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward -looking
information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the
forward-looking information: risks related to the speculative nature of the Company ’s business; the Company ’s formative stage of
development; the impact of COVID19 on the timing of exploration and development work; the Company ’s financial position; possible
variations in mineralization, grade or recovery rates; actual results of current exploration activities; conclusions of future economic
evaluations; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of
gold, precious and base metals or certain other commodities; fluctuations in currency markets; change in national and local government,
legislation, taxation, controls regulations and political or economic developments; risks and hazards associated with the business of
mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formation
pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations
that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous
populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and
development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to
properties. Such factors are described in detail in the Prospectus Supplement and the documents incorporated by reference therein.
Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by
applicable securities laws. There can be no assurance that forward -looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements and there may be other factors that cause results not to be
anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this news release.