On March 4, 2024, Collective Mining Ltd. completed a non-brokered private placement with a strategic investor consisting of the sale of 4,500,000 units at a price of $4.20 per unit for gross proceeds of $18.9 million.
Each unit was comprised of one common share of Collective and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $5.01 per warrant share exercisable for a period of 36 months following the closing date of the offering, provided, however, that should the closing price at which the common shares trade equal or exceed $6.00 for 20 consecutive trading days following the date that is 24 months after the closing date, Collective may accelerate the warrant term to the date which is 30 trading days following the date a notice is provided to the investor and a press release is issued by Collective announcing the accelerated warrant term.
Collective also granted to the investor, subject to the investor maintaining certain ownership thresholds in Collective, (a) the right to participate in equity financings and top-up its holdings in relation to dilutive issuances in order to maintain its pro rata ownership interest or acquire up to a 9.99% ownership interest in Collective, on a partially diluted basis; and (b) the right to nominate one person (and in the case of an increase in the size of the board of directors of the Collective to eight or more directors, two persons) to the board of directors of Collective in the event that the investor’s ownership interest in Collective exceeds and remains at or above 10%, on a partially diluted basis.
Cassels acted for Collective.