07:26 AM EDT, 10/29/2024 (MT Newswires) -- Collective Mining Ltd. ( CNL ) said Tuesday that, further to its prior announced C$35 million "bought deal" public offering of common shares on behalf of a syndicate of underwriters, its strategic investor with participation rights in equity financings of the corporation has exercised such participation rights in connection with the public offering.

According to a statement, the strategic investor intends to subscribe for such number of common shares, at an issue price of C$5.00 each, that will result in the strategic investor holding 9.99% of the issued and outstanding common shares, on a partially diluted basis, after giving effect to the public offering calculated in accordance with the terms of the strategic investor's participation right. It said the common shares to be issued to the strategic investor will be completed on a non-brokered private placement basis expected to close concurrently with the public offering. The common shares to be issued to the strategic investor will be subject to a statutory hold period under Canadian securities laws expiring four months and one day from the date of issuance.

The public offering and concurrent private placement are subject to the approval and authorization, as applicable, of the Toronto Stock Exchange and NYSE American.

CNL was down $0.065 or 1.3% at $5.025 on the TSX yesterday.