Collective Mining (TSXV:CNL; OTCQX:CNLMF) has closed its “bought deal" for gross proceeds of approximately $30 million. The deal consisted of the sale of over 7.0 million common shares of the company at a price of $4.25 per share.
The proceeds from the offering are expected to be used for further exploration and development on the company’s Guayabales Project, a copper-gold-silver project in Colombia. With the completion of the offering, the underwriters received a cash commission of approximately $1.8 million.
The company has granted the underwriters an over-allotment option, to purchase up to an additional 1.0 million common shares for a period of 30 days from the closing date of the offering. If the option is exercised in full, the aggregate gross proceeds of the offering will be approximately $35 million.
Officers and directors of the company (otherwise known as insiders) reportedly purchased over 117,00 shares.
The Guayabales project is located "Middle Cauca" mineral belt in Colombia. Situated along the west side of the Panamerican highway, the company's exploration license is located directly contiguous to the Marmato mine, which boasts current reserves of 3.2 million oz. of gold at 3.2 g/t gold and a total resource estimate of 8.8 million oz. of gold. Currently, 10 fully permitted mines are currently operating within three kilometres of Guayabales.
To learn more, visit www.CollectiveMining.com.