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Friday, Apr 18, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Agnico Eagle Mines invests over CAD$63.4M into Collective Mining
Agnico Eagle Mines invests over CAD$63.4M into Collective Mining
Image via Agnico Eagle Mines.

Gold

Agnico Eagle Mines invests over CAD$63.4M into Collective Mining

Collective is a gold, silver, copper, and tungsten exploration company with projects in Caldas, Colombia

Agnico Eagle Mines Ltd (NYSE: AEM) (TSE: AEM) has purchased 4.741 shares of metals ore and mines explorer, Collective Mining Ltd (TSE: CNL) (NYSEAMERICAN: CNL), for CAD$11 per share, and a total of CAD$52.161 million.

Announced on Monday, the deal also means Agnico will convert all of the present warrants it owns of Collective, and turn them into an extra 2.250 million shares at CAD$5.01 per share, and an extra CAD$11.272 million.

Post-transaction, Agnico Eagle will own 12.718 million shares and no warrants, representing approximately 14.99 per cent of the issued and outstanding shares. It currently owns 5.726 million shares and 2.250 million warrants.

Collective is a gold, silver, copper, and tungsten exploration company with projects in Caldas, Colombia. The company has options to acquire full ownership of two projects within an established mining camp that hosts ten fully permitted and operating mines.

Furthermore, the Collective’s flagship Guayabales project is anchored by the Apollo system, a large-scale, bulk-tonnage, high-grade gold-silver-copper-tungsten deposit.

Last year, the company made headlines by announcing the discovery of a significant new gold system, “Olympus Deeps,” at Guayabales.

Collective said that the Olympus target shares similarities with the multi-million-ounce Marmato mine, located 2.5 kilometres southeast. Additionally, Marmato spans more than a vertical kilometre and features an upper-level sheeted vein system with a porphyry at depth.

Agnico said that investing in Collective Mining gives it exposure to an early-stage gold exploration project in Colombia. The project is led by a team with a proven track record in a region with a long mining history. Agnico-Eagle also added that it continues to assess the project’s strong geological potential and the jurisdiction.

Read more: Equinox Gold acquires Calibre Mining for $2.6B

Read more: Calibre Mining beats gold guidance for 2024 in Nevada and Nicaragua

Agnico’s investment adds gold exploration exposure to Colombia

According to a March 12, 2025, press release, Collective announced assay results from two drill holes aimed at expanding the new Ramp Zone discovery. The Ramp Zone is situated in the deepest portion of the Apollo system within the multi-target Guayabales project. It contains high-grade gold with minor amounts of bismuth and tellurium and shares characteristics with the multi-million-ounce Marmato Deeps deposit, located 1.75 kilometres southeast.

Agnico’s investment in Collective Mining adds early-stage exposure to a promising gold exploration project in Colombia. This move aligns with Agnico’s strategy of securing interests in geologically rich regions with established mining infrastructure. Further, the Guayabales project offers long-term upside in a district known for multi-million-ounce deposits like Marmato.

Agnico’s portfolio already includes some of the world’s most significant gold operations. It holds dominant positions in Canada’s Abitibi region, where the Detour Lake and Canadian Malartic mines produce substantial ounces annually. The company also operates in Nunavut, with the Meliadine and Meadowbank mines reinforcing its northern presence.

Beyond Canada, Agnico has a foothold in Mexico with the La India mine and in Finland through the Kittilä operation. By adding exposure to Colombia, Agnico diversifies its growth pipeline while maintaining its focus on high-quality, geologically prospective assets.

Agnico expects the private placement to close either on or around March 20.

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