Collective Mining to acquire Guayabales surface land

Executive Summary

• Collective Mining Ltd. has executed final binding purchase agreements to acquire the remaining surface rights required for a future mining operation at its Guayabales project in Caldas, Colombia, for a total consideration of $44 million USD.
• The acquisition derisks the project by securing all necessary surface land, allowing the company to proceed with plans to construct an exploration adit in Q4 2026 to support geological understanding and future feasibility studies.
• Payment for the land will be made in installments over five years (2026–2030), with specific triggers for accelerated payment if environmental approval is received and construction begins prior to the final installment.

Key Details

• Transaction Structure: Collective Mining acquired remaining surface rights via final binding purchase agreements (BPAs) with arm's-length vendors. The company already holds mineral titles or options to acquire them for these areas.
• Total Consideration: $44 million USD.
• Payment Schedule:
  • $8.7 million USD in 2026 (upon execution of BPAs).
  • $10 million USD in 2027.
  • $8.5 million USD in 2028.
  • $8.4 million USD in 2029.
  • $8.4 million USD in 2030.
• Financial Terms:
  • Interest rate of 6% per annum applies to certain future payments.
  • Promissory notes and mortgages over the acquired surface rights are used to ensure compliance.
  • Acceleration Clause: If Collective receives environmental agency approval and elects to begin construction before completing final installments, outstanding payments become immediately due prior to major mine construction.
• Project Development (Guayabales):
  • Exploration Adit: Construction planned to commence in Q4 2026.
  • Purpose: To provide underground access for drill chambers, specifically to test the "Trap" system; enhance geotechnical and hydrological characterization; and allow for metallurgical bulk sample collection.
  • Strategic Value: Data will support future scoping and feasibility studies.
• Asset Details:
  • Apollo System: Polymetallic deposit enriched in gold, copper, tungsten, and silver.
  • Trap System: Discovered in 2022 via surface drilling; located along a 1.4-kilometer mineralized corridor with gold and silver sheeted veinlets. Previously sparsely drilled due to steep topography.
  • Location: Caldas, Colombia, next to the Pan-American Highway and hydro-power lines, with access to skilled labor.
• Company Context:
  • Flagship project is Guayabales.
  • Also holds option to earn up to 100% interest in the San Antonio project (silver system at Pound target), located 2–5 km east-northeast of Guayabales.
  • Listed on NYSE American and Toronto Stock Exchange (CNL).