Collective Mining (TSX, NYSE: CNL) hit a fresh one-year high after the company secured a $63.4 million investment from Agnico Eagle Mines (TSX, NYSE: AEM) in a share offering and warrants deal.
Collective rose 3.4% to $11.54 on Friday morning in Toronto Stock Exchange trading. That gave the company a market capitalization of $897.6 million.
Agnico agreed to buy 4,741,984 common shares of Collective at C$11.00 apiece, the company said on Friday. Closing of the offering will depend on Agnico exercising the purchase warrants it holds to buy another 2.25 million shares at C$5.01 each. In that case, Agnico would own 14.99% of Collective.
“I would like to thank Agnico Eagle for its additional support as we continue to advance our Guayabales project,” Collective’s executive chair Ari Sussman said in a release. “The proceeds received will enable us to continue with our planned drill program and we look forward to releasing results in the near term.”
Best assays
The deal comes just two days after Toronto-based Collective reported its best assays yet from the Ramp zone, inside the Apollo system at its main Guayabales project. The news boosted Collective shares to a one-year high on Thursday.
The Agnico investment and Ramp zone results add to tailwinds for Collective so far this year. Just two-and-a-half weeks ago, the company reported its best intercept yet at Guayabales, located in the Caldas Department, about 275 km west of Bogota.
Collective has six rigs drilling in its fully funded 60,000-metre program for this year. Four rigs are at Apollo, one is drilling at the Tower target and the sixth is at the San Antonio project, 4 km east of Guayabales. Two more rigs are expected to start turning later this month and early in the second quarter.
The company has completed about 110,000 metres of diamond drilling at Guayabales, including 74,000 metres in 163 holes at Apollo.
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