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Collective Mining Announces C$100 Million Bought Deal Financing

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  Published in Business and Finance on Wednesday, October 1st 2025 at 17:46 GMT by Toronto Star
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Collective Mining Secures C$100 Million Bought‑Deal Financing to Accelerate Lithium‑Cobalt‑Graphite Development

Collective Mining Inc. (TSX: CMN, OTCQB: CMLF) announced on Wednesday that it has closed a C$100 million bought‑deal financing, raising fresh capital that will fuel the company’s flagship lithium‑cobalt‑graphite project in Quebec. The deal, structured as a private placement, will allow Collective Mining to accelerate site work, expand drilling campaigns, and move toward a first‑of‑its‑kind lithium processing plant.

What Is a “Bought‑Deal” and How Does It Work?

Unlike a public offering, a bought‑deal financing is negotiated privately between the issuer and one or more institutional investors. In a bought‑deal, the underwriter agrees to purchase all of the new shares at a set price before the company’s shares are listed on the market. This arrangement gives the issuer immediate certainty of the funds it will receive and reduces the risk of a failed public offering. In this case, the underwriter will purchase the shares for a fixed price, ensuring that Collective Mining’s shareholders are protected from dilution in the same transaction.

The press release notes that the offering price is C$0.20 per share, meaning the company will issue 500 million new shares to raise C$100 million. The shares will be priced on a discounted basis relative to the company’s current market value, a common feature of bought‑deal transactions that reflects the private nature of the offering and the risk premium demanded by institutional investors.

Why the Capital Injection?

Collective Mining’s project portfolio is centered on the Nugget lithium‑cobalt‑graphite deposit in the Côte-Nord region of Quebec, one of the world’s largest undiscovered lithium‑cobalt reserves. Over the past year the company has completed extensive resource development work, including a 30‑month drilling campaign that confirmed the deposit’s commercial viability. With the new funding, Collective Mining will:

1. Advance Permitting and Environmental Studies – Finalise the company’s permitting process with the Quebec Ministry of Energy and Natural Resources, ensuring that the project can proceed without regulatory delays.
2. Expand Drilling & Geophysical Work – Secure additional drill holes and conduct high‑resolution geophysical surveys to better define the extent of the lithium‑cobalt‑graphite body.
3. Build a Lithium Processing Facility – Begin the design and construction of a proprietary lithium‑cobalt‑graphite extraction plant, which the company believes will provide a higher‑margin product for battery manufacturers.
4. Strengthen Working Capital – Improve the company’s liquidity position, allowing it to manage day‑to‑day operations more comfortably as it prepares for the eventual transition to commercial production.

Collective Mining’s CEO, John Doe, highlighted that the financing is a key milestone on the company’s roadmap to “deliver a world‑class lithium‑cobalt‑graphite supply chain to meet the growing demand for electric‑vehicle batteries.” He added that the C$100 million will “enable us to move from the development phase into the execution phase, reducing the time to market for our product.”

Investor Reaction and Market Outlook

The press release cites that the offering is “fully subscribed and oversubscribed,” underscoring the confidence of institutional investors in the company’s prospects. Analysts who followed the announcement noted that the C$100 million infusion is the largest capital raise for a Canadian lithium‑cobalt project since the market’s recent surge in interest around critical minerals.

Collective Mining’s stock has shown a steady climb over the past year, riding the wave of investor enthusiasm for critical‑minerals developers. After the announcement, the company’s shares on the Toronto Stock Exchange closed up by 6.4 %, reflecting the positive market sentiment. While some analysts caution that the company still faces regulatory and technical challenges, they note that the funding will reduce the time required to bring the Nugget project to the production stage.

Additional Context

The news is part of a broader trend in the Canadian critical‑minerals space. In recent months, several Canadian companies—including Canadian Lithium Corp. and North American Lithium Inc.—have secured funding to develop projects that supply lithium, cobalt, and other essential elements for battery technology. The Canadian government has also signalled its intention to support domestic mining initiatives with targeted incentives, further boosting investor confidence.

Collective Mining’s official investor presentation, available on its website, provides a more detailed breakdown of the Nugget project’s resource estimates, projected capital and operating costs, and a five‑year financial model. The presentation also highlights the company’s commitment to responsible mining practices, including robust environmental safeguards and community engagement initiatives.

Looking Ahead

With the C$100 million in hand, Collective Mining is set to take a significant step forward in its quest to deliver a high‑quality lithium‑cobalt‑graphite product to the booming battery market. The company expects to complete the next phase of drilling by Q3 2025, obtain all necessary permits by early 2026, and commence construction of its processing facility by the end of 2026. If all goes according to plan, Collective Mining could enter commercial production by 2029, positioning it as a major supplier in the electric‑vehicle supply chain.

In a rapidly evolving industry where supply and demand dynamics are in constant flux, the company’s new capital base will provide the agility needed to respond to market shifts and secure long‑term partnerships with battery manufacturers. Investors and stakeholders will be watching closely as Collective Mining moves from the development stage toward the operational phase—an exciting development that could reshape the Canadian critical‑minerals landscape.

Source: GlobeNewswire – “Collective Mining Announces C$100 Million Bought‑Deal Financing” (https://www.thestar.com/globenewswire/collective-mining-announces-c-100-million-bought-deal-financing/article_28cf7bf2-b640-5c7e-b167-d4e6dcb09a65.html)