Collective Mining Finalizes Land Acquisition for Guayabales Project in Colombia

Collective Mining Ltd. (NYSE: CNL, TSX: CNL) has executed final binding purchase agreements to acquire the remaining surface rights required for future mining operations at its Guayabales Project in the department of Caldas, Colombia. The agreements, made with several arms-length vendors, provide the company with the necessary land access to develop the Apollo System, a polymetallic deposit containing gold, copper, silver, and tungsten.

The total purchase price for the surface rights is $44 million USD, structured in installments over a five-year period. According to the company, the payment schedule begins with $8.7 million USD in 2026, followed by $10 million USD in 2027, $8.5 million USD in 2028, and two final payments of $8.4 million USD in 2029 and 2030, respectively. The agreements include a 6% annual interest rate on certain future payments and are secured by promissory notes and mortgages over the acquired property. If the company receives environmental approval and elects to begin major mine construction before the final installments are paid, the outstanding balance will become due immediately.

“Completing the acquisition of all surface land required for a future mining scenario at our Guayabales Project is a major step towards realizing our vision of developing a major critical mineral mining operation in Colombia.” — Ari Sussman, Executive Chairman of Collective Mining.

The Guayabales Project is situated near the Pan-American Highway and existing hydropower infrastructure. By securing these titles, the company aims to mitigate risks associated with fragmented land ownership in the region. The project area is located within an established mining district that currently hosts 10 operating mines. Collective Mining also holds or has options to acquire the mineral titles corresponding to these surface areas.

“Completing the acquisition of all surface land required for a future mining scenario at our Guayabales Project is a major step towards realizing our vision of developing a major critical mineral mining operation in Colombia,” stated Ari Sussman, executive chairman of Collective Mining. “The future mine will benefit immensely from robust infrastructure as it will be located next to the Pan-American Highway and hydropower lines and have access to readily available skilled labor from our established mining region in Caldas.”

Following the land acquisition, the company intends to begin construction of an exploration socavón, or adit, in the fourth quarter of 2026. This underground access will facilitate geological study and the construction of drill chambers to test the Trap System. Discovered in 2022, the Trap System consists of a 1.4-kilometer mineralized corridor. The use of an exploration adit is expected to assist in geotechnical and hydrological characterization, as well as the collection of metallurgical bulk samples required for future scoping and feasibility studies.

In addition to Guayabales, the company is conducting exploration at the San Antonio Project, located approximately two to five kilometers east-northeast. Collective Mining was founded by the management team previously responsible for Continental Gold Inc., which was acquired by Zijin Mining Group Co., Ltd. (SSE: 601899, HKEX: 2899). Currently, management and strategic investors hold a 45.3% stake in the company.

Above photo: Land surrounding Collective Mining’s Guayabales Project. (Photo © Loren Moss)