Agnico Eagle invests in Collective Mining to expand Guayabales Project

Collective Mining Ltd. has significantly strengthened its financial position with a C$63.4 million investment from Agnico Eagle Mines Limited, marking a substantial step in the company’s ongoing expansion efforts in Colombia. The investment consists of both a direct share purchase and the early exercise of warrants, increasing Agnico Eagle’s ownership stake in Collective Mining to approximately 14.99%.

This capital injection underscores rising confidence in Collective Mining’s Guayabales Project, particularly its high-grade Apollo System Drilling initiative, where recent discoveries in the Ramp Zone have indicated promising mineralization trends. The funds will be used to advance the company’s exploration programs while also supporting general working capital needs as drilling activity intensifies across its Colombian properties.

How Does Agnico Eagle’s Investment Impact Collective Mining?

Under the agreement, Agnico Eagle has committed to acquiring 4,741,984 common shares of Collective Mining at C$11.00 per share, generating approximately C$52.2 million in gross proceeds. Additionally, Agnico Eagle will exercise its existing common share purchase warrants to acquire an extra 2,250,000 shares at C$5.01 per share, adding another C$11.2 million in funding.

Once regulatory approvals are obtained from the Toronto Stock Exchange and NYSE American, the transaction is expected to close within two business days. Upon completion, Agnico Eagle will become one of the largest shareholders in Collective Mining, reinforcing its long-term support for the company’s Guayabales Project Expansion.

Ari Sussman, Executive Chairman of Collective Mining, highlighted the significance of this investment, stating that the additional capital will enable the company to continue its aggressive exploration schedule. He reiterated the company’s focus on expanding the Apollo System Drilling program and refining its resource model to unlock further value.

What Makes the Guayabales Project a High-Potential Asset?

Located in Caldas, Colombia, the Guayabales Project is positioned within a well-established mining district that hosts several producing mines. The project includes multiple exploration targets, with the Apollo System standing out as the most advanced. The Apollo deposit is a large-scale, high-grade gold-silver-copper-tungsten system that has delivered strong drilling results, drawing comparisons to other high-profile discoveries in the region.

The project’s exploration momentum has been particularly focused on the Ramp Zone Discovery, a newly identified high-grade area within the deeper portion of the Apollo system. This discovery has generated considerable industry attention, as early drill results have confirmed extensive mineralization. The proximity of the Ramp Zone to the Marmato Deeps deposit, located only 1.75 kilometers away, suggests that the geological structures in the area may host significant additional resources.

With the new funding in place, Collective Mining aims to accelerate its Guayabales Project Expansion by conducting deeper and more comprehensive drill tests. The company’s priority is to improve resource definition, identify new mineralized zones, and enhance its overall understanding of the deposit’s scale and potential.

How Significant Are the Recent Drill Results at the Ramp Zone Discovery?

The most recent drilling results from the Ramp Zone Discovery have reinforced the high-grade potential of the Apollo System. Drill hole APC105-D1 intercepted an impressive 75.80 metres at 8.01 g/t gold equivalent, marking the longest and highest-grade accumulation recorded in the newly discovered zone. The mineralization encountered in this hole supports the hypothesis that the Ramp Zone may extend beyond its currently known boundaries.

Another key drill hole, APC103-D3, intersected 20.30 metres at 6.68 g/t gold equivalent before being cut off by a post-mineral dyke. While the hole was terminated prematurely, the results confirm the presence of high-grade mineralization and suggest that additional step-out drilling is needed to determine the full extent of the zone.

With the Ramp Zone Discovery remaining open in multiple directions, Collective Mining has intensified its exploration efforts in this area. The company has completed six drill holes targeting the Ramp Zone, with results pending for additional holes currently in progress. The upcoming assays will provide further clarity on the expansion potential of this promising discovery.

What Are the Next Steps for Collective Mining’s Exploration Strategy?

With six drill rigs currently operating across its Colombian properties, Collective Mining is advancing its exploration strategy at an aggressive pace. Four rigs are focused on the Apollo System Drilling program, while the remaining two are testing new targets such as the Tower and San Antonio prospects. This extensive drilling program is designed to enhance the company’s geological understanding and expand known mineralized zones.

The 2025 exploration plan includes testing newly identified high-grade sub-zones within the Apollo System, aiming to improve the overall grade and size of the deposit. Expanding the mineralized footprint of the Ramp Zone Discovery is another priority, with drilling efforts focused on extending the deposit’s strike length and vertical extent. Additionally, the company is exploring new targets, including Tower and X, which have shown early indications of mineralization and may present new resource opportunities.

Since the inception of its drilling campaign, Collective Mining has completed over 110,000 metres of diamond drilling, including 74,000 metres across 163 holes at the Apollo System. This extensive dataset is allowing the company to refine its exploration models and target the highest-potential areas for further resource expansion. Two additional drill rigs are scheduled to begin operations in the coming months, further increasing the company’s drilling capacity.

What Does This Mean for Investors?

Agnico Eagle’s increased investment in Collective Mining signals strong institutional confidence in the company’s exploration potential. The Guayabales Project Expansion, particularly the Apollo System Drilling program and the high-grade Ramp Zone Discovery, is drawing significant attention from investors looking for exposure to high-grade gold deposits in emerging mining jurisdictions.

Upcoming drill results will be closely monitored by the market, as further assay reports are expected to provide insight into the deposit’s scale and continuity. Given the strong initial results from the Ramp Zone, there is potential for a substantial revaluation of the company’s resource estimates, which could have a direct impact on stock performance and investor sentiment.

Collective Mining’s ability to define a larger, high-grade resource base will be a key factor in its long-term success. As drilling activity intensifies and new mineralized zones are identified, the company is positioning itself as a leading exploration player in Colombia. If the trend of high-grade discoveries continues, Collective Mining may emerge as one of the most significant success stories in the region’s mining sector.