Collective Mining Ltd 6-K, filed Nov 14, 2024

Collective Mining Ltd. (CNL)

6-K 2024-11-14 For: 2024-11-14

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Added on April 07, 2026

About this 6-K

Collective Mining Ltd filed this 6-K on November 14, 2024.

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EXHIBIT NO.		DESCRIPTION
99.1		Interim financial statements.
99.2		Interim Management Discussion and Analysis.
99.3		Form 52-109F2 - Certification of Interim Filings by CFO.
99.4		Form 52-109F2 - Certification of Interim Filings by CEO.

	Collective Mining Ltd.

Date: November 14, 2024	By:	/s/ Paul Begin
	Name:	Paul Begin
	Title:	Chief Financial Officer and Corporate Secretary

As at	Note		September 30, 2024 (Unaudited)			December 31, 2023 (Audited)
			$			$
ASSETS
Current assets:
Cash and cash equivalents		12(a)		15,519,918			14,166,196
Receivables and prepaid expenses		4		813,326			347,166
				16,333,244			14,513,362
Non-current assets:
Property, plant and equipment		5		625,015			656,219
Long-term VAT receivable		7		2,170,041			1,799,497
				2,795,056			2,455,716
Total assets				19,128,300			16,969,078

LIABILITIES AND EQUITY
Current liabilities:
Account payables and accrued liabilities				2,432,311			2,488,257
Warrants liability		8		1,229,402			1,638,808
Current portion of lease liability		9		82,880			32,918
				3,744,593			4,159,983
Non-current liabilities:
Lease liability		9		100,050			86,779
				100,050			86,779
				3,844,643			4,246,762
Equity:
Share capital		13		71,131,992			53,972,765
Contributed surplus				16,918,776			14,159,006
Deficit				(72,767,111	)		(55,409,455	)
				15,283,657			12,722,316
Total liabilities and equity				19,128,300			16,969,078

Commitments, options agreements and contingencies		18
Subsequent events		19

Approved on behalf of the Board of Directors:

(signed) Ari Sussman		(signed) Paul Murphy
Director		Director

		For the three months ended September 30						For the nine months ended September 30
	Note	2024			2023			2024			2023
			$			$			$			$
Expenses
Exploration and evaluation	16(a)		(4,500,209	)		(4,103,067	)		(13,519,980	)		(9,588,838	)
General and administration	16(b)		(1,446,653	)		(1,270,527	)		(3,871,936	)		(3,315,794	)
			(5,946,862	)		(5,373,594	)		(17,391,916	)		(12,904,632	)
Other income (expense)
Revaluation of warrants liability	8		(647,528	)		1,658,640			(181,321	)		(2,115,634	)
Foreign exchange gain (loss)			99,342			(238,501	)		(362,445	)		745,126
Other income			—			—			79			10
Net loss before finance items and income tax			(6,495,048	)		(3,953,455	)		(17,935,603	)		(14,275,130	)
Finance income (expense)
Interest income			224,271			220,930			736,823			506,199
Finance costs	16(c)		(29,723	)		(16,603	)		(158,876	)		(51,419	)
Net loss before income tax			(6,300,500	)		(3,749,128	)		(17,357,656	)		(13,820,350	)
Income tax			—			—			—			—
Net loss and comprehensive loss			(6,300,500	)		(3,749,128	)		(17,357,656	)		(13,820,350	)
Basic and diluted loss per common share			(0.09	)		(0.06	)		(0.26	)		(0.24	)
Weighted average common shares outstanding, basic and diluted			68,272,013			60,523,642			66,321,577			58,148,036

For the nine months ended	Note	September 30, 2024			September 30, 2023
		$			$
Cash flows from (used in) operating activities
Net loss			(17,357,656	)		(13,820,350	)
Items not involving cash and cash equivalents:
Revaluation of warrants liability			181,321			2,115,634
Finance costs expensed	16(c)		105,172			11,818
Foreign exchange (gain) loss			362,445			(745,126	)
Share-based compensation	16(b)		975,409			1,066,982
Depreciation and amortization	16(a),(b)		248,130			173,171
Net changes in working capital items	17(a)		(1,029,125	)		269,254
			(16,514,304	)		(10,928,617	)
Cash flows from (used in) financing activities
Cash proceeds from issuance of shares	13		13,925,729			21,882,311
Cash costs related to issuance of shares			(702,386	)		(1,579,306	)
Financing costs paid			(65,849	)		—
Cash proceeds from warrant exercises	13		4,351,656			1,351,420
Cash received from option exercises	13, 15		777,862			402,845
Lease payments	9		(86,387	)		(36,653	)
			18,200,625			22,020,617
Cash flows from (used in) investing activities
Acquisition of property, plant and equipment	5		(92,151	)		(223,060	)
			(92,151	)		(223,060	)
Net change in cash and cash equivalents during the period			1,594,170			10,868,340
Cash and cash equivalents, opening balance			14,166,196			8,503,274
Foreign exchange effect on cash balances			(240,448	)		474,111
Cash and cash equivalents, end of period			15,519,918			19,845,725

	Note	Number of shares issued and outstanding		Share capital			Contributed surplus		Deficit			Total
				$			$		$			$
Balance January 1, 2024			61,234,906		53,972,765			14,159,006		(55,409,455	)		12,722,316
Issuance of shares – Offering March 2024	13		4,500,000		13,925,729			—		—			13,925,729
Fair value of warrants issued			—		(1,193,634	)		—		—			(1,193,634	)
Share issue costs	13		—		(702,386	)		—		—			(702,386	)
Exercise of warrants	13		1,836,150		4,351,656			1,784,361		—			6,136,017
Exercise of options	13, 15		744,917		777,862			—		—			777,862
Share-based compensation	16(b)		—		—			975,409		—			975,409
Net loss for the period			—		—			—		(17,357,656	)		(17,357,656	)
Balance September 30, 2024			68,315,973		71,131,992			16,918,776		(72,767,111	)		(15,283,657	)
Balance January 1, 2023			52,771,782		31,655,207			11,558,338		(36,275,797	)		6,937,748
Issuance of shares – Offering March 2023	13		7,060,000		21,882,311			—		—			21,882,311
Share issue costs	13		—		(1,579,306	)		—		—			(1,579,306	)
Exercise of warrants	13		555,550		1,351,420			1,126,799		—			2,478,219
Exercise of options	13, 15		257,574		402,845			—		—			402,845
Share-based compensation	16(b)		—		—			1,066,982		—			1,066,982
Net loss for the period			—		—			—		(13,820,350	)		(13,820,350	)
Balance September 30, 2023			60,644,906		53,712,477			13,752,119		(50,096,147	)		17,368,449

As at	September 30, 2024		December 31, 2023
	$		$
Prepaid expenses		672,842		280,616
Advance to suppliers		86,673		48,179
Other receivables (a)		53,811		18,371
		813,326		347,166

	Land and Buildings			Exploration Equipment and structures			Computer Equipment			Leasehold Improvement			Right of use assets (a)			Total
	$			$			$			$			$			$
Opening net book value, January 1, 2024		62,075			335,433			64,636			87,541			106,534			656,219
Additions		—			56,747			29,394			6,009			124,778			216,928
Disposals and write-downs		—			—			—			—			—			—
Depreciation (b)		(2,495	)		(89,144	)		(46,688	)		(47,002	)		(62,803	)		(248,132	)
Net book value, September 30, 2024		59,580			303,036			47,342			46,548			168,509			625,015
Balance, September 30, 2024
Cost		65,876			528,987			219,957			225,820			244,628			1,285,268
Accumulated depreciation		(6,296	)		(225,951	)		(172,615	)		(179,272	)		(76,119	)		(660,253	)
Net book value		59,580			303,036			47,342			46,548			168,509			625,015

		Option Payments			Exploration Expenditures		Total
		$			$		$
Phase 1	June 24, 2020 – June 24, 2024		2,000,000			3,000,000		5,000,000
Phase 2	June 24, 2024 – June 24, 2030		2,000,000			10,000,000		12,000,000
Phase 3	To commercial production		8,000,000	¹		—		8,000,000
			12,000,000			13,000,000		25,000,000

	$
Total Phase 1		1,750,000
Total Phase 2		1,000,000
Total Phase 3		4,300,000
		7,050,000

	Nine-month period ended September 30, 2024						Year ended December 31, 2023
	Number of warrants			$			Number of warrants			$

Opening balance		1,836,150			1,638,808			2,391,700			1,462,126
Subscription Warrants issued – March 2024 (b)		2,250,000			1,193,634			—			—
Warrants exercised		(1,836,150	)		(1,784,361	)		(555,550	)		(1,126,799	)
Fair value revaluation of warrants liability (a) (b)		—			181,321			—			1,303,481
Balance, end of period		2,250,000			1,229,402			1,836,150			1,638,808
Current portion		2,250,000			1,229,402			(1,836,150	)		(1,638,808	)
Long-term portion		—			—			—			—

	C$		$
Warrants liability – Subscription Warrants		1,326,628		972,627
Share capital – Subscription Shares		9,436,022		6,918,089
Total gross proceeds		10,762,650		7,890,716

	C$		$
Warrants liability – Subscription Warrants		1,620,000		1,193,634
Share capital – Subscription Shares		17,280,000		12,732,095
Total gross proceeds		18,900,000		13,925,729

	C$	4.34
Weighted average risk-free interest rate		3.41	%
Weighted average dividend yield		Nil
Weighted average stock price volatility		41.38	%
Weighted average period to expiry (years)		2.42

For the nine months ended September 30	2024		2023
	$		$
Management salaries and benefits		585,000		528,136
Share-based payments		249,146		337,527
		834,146		865,663

As at September 30, 2024	FVTPL		FVOCI		Amortized Cost		Total
	$		$		$		$
Financial liabilities
Warrants liability (level 2)		1,229,402		—		—		1,229,402

As at September 30, 2024	Foreign Currency	Foreign Balance			$
Cash and cash equivalents	COP (000’s)		1,108,761			266,260
Cash and cash equivalents	CAD		14,542,423			10,772,963
Receivables	COP (000’s)		1,311,356			314,911
Long-Term VAT Receivable	COP (000’s)		9,036,507			2,170,041
Receivables	CAD		72,369			53,811
Accounts payable and accrued liabilities	COP (000’s)		(8,022,570	)		(1,926,553	)
Accounts payable and accrued liabilities	CAD		(44,204	)		(32,746	)
Warrants liability	CAD		(1,659,570	)		(1,229,402	)
Lease liability	COP (000’s)		(761,759	)		(182,930	)

As at December 31, 2023	Foreign Currency	Foreign Balance			$
Cash and cash equivalents	COP (000’s)		1,380,749			361,259
Cash and cash equivalents	CAD		13,041,560			9,860,548
Receivables	COP (000’s)		698,996			182,885
Long-Term VAT Receivable	COP (000’s)		6,877,768			1,799,497
Receivables	CAD		24,298			18,371
Accounts payable and accrued liabilities	COP (000’s)		(5,973,328	)		(1,562,860	)
Accounts payable and accrued liabilities	CAD		(208,325	)		(157,512	)
Warrants liability	CAD		(2,167,487	)		(1,638,808	)
Lease liability	COP (000’s)		(457,494	)		(119,698	)

	2024						2023
	Number of stock options			Weighted average exercise price			Number of stock options			Weighted average exercise price
				C$						C$
Outstanding, beginning of period		4,177,217			3.10			4,019,167			2.25
Granted		—			—			155,000			6.20
Exercised		(744,917	)		(1.42	)		(257,574	)		(2.11	)
Forfeited		—			—			(183,126	)		(2.61	)
Outstanding, September 30		3,432,300			3.47			3,733,467			2.40

	Options Outstanding						Options Exercisable
Range of Price (C$)	Number of Options Outstanding		Weighted average remaining contractual life (years)		Weighted average exercise price (C$)		Number of options exercisable		Weighted average remaining contractual life (years)		Weighted average exercise price (C$)
$2.00 – $3.00		2,084,800		2.56		2.87		1,869,800		2.48		2.88
$3.01 – $4.00		142,500		1.85		3.95		142,500		1.85		3.95
$4.01 – $7.00		1,205,000		4.11		4.44		127,500		3.79		5.50
		3,432,300		3.07		3.47		2,139,800		2.52		3.11

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024		2023
	$		$		$		$
Drilling services		1,820,870		1,756,866		4,861,340		3,852,913
Salaries and benefits		608,377		472,826		1,713,808		1,240,236
Option payments and fees (i)		390,798		217,786		1,614,261		563,168
Assaying		421,712		722,496		1,453,674		1,595,075
Field costs, surveys and other		431,608		331,150		1,296,171		737,762
Consulting and professional fees		153,435		164,518		948,395		575,424
Transportation and meals		290,652		212,991		780,689		497,933
Community expenses		228,033		73,613		376,830		161,168
Security		77,851		93,855		260,048		204,425
Depreciation and amortization		76,873		56,966		214,764		160,734
		4,500,209		4,103,067		13,519,980		9,588,838

	Total		Less than 1 Year		Years 2 – 5		After 5 Years
	$		$		$		$
Other lease commitments (a)		153,545		153,545		—		—
Service contracts (b)		1,499,108		1,499,108		—		—
		1,652,653		1,652,653		—		—

Description Of Business		2
2024 Summary And Highlights		2
Business Transaction		4
Exploration Summary		4
Selected Consolidated Financial Information		9
Overview Of Consolidated Financial Results		9
Summary Of Consolidated Quarterly Results		10
Liquidity And Management Of Capital Resources		10
Equity And Warrants		11
Trends And Risks That Affect The Company’s Financial Condition		12
Contractual Obligations, Commitments And Option Agreements		12
Related Party Transactions		13
Financial Instruments And Related Risks		13
Off-Balance Sheet Arrangements		13
Market Trends		13
Critical Accounting Estimates And Judgements		14
Changes In Accounting Policies		14
Internal Control Over Financial Reporting And Disclosure Controls And Procedures		14
Emerging Market Disclosure		15
Risks And Uncertainties		19
Caution Regarding Forward-Looking Information		19
Corporate Information		21

	2024						2023
For the three months ended September 30	San Antonio		Guayabales		Total		Total
	$		$		$		$
Drilling services		—		1,820,870		1,820,870		1,756,866
Salaries and benefits		—		608,377		608,377		472,826
Option payments and fees		250,000		140,798		390,798		217,786
Assaying		7,459		416,215		423,674		722,496
Field costs, surveys and other		2,248		429,199		431,447		331,150
Transportation and meals		14,949		275,703		290,652		212,991
Consulting, professional fees and technical assistance		12,361		139,274		151,635		164,518
Community expenses		—		228,032		228,032		73,613
Security		3,128		74,722		77,850		93,855
Depreciation and amortization		—		76,874		76,874		56,966
		290,145		4,210,064		4,500,209		4,103,067

	$
August 8, 2020		30,000
July 9, 2021		50,000
July 9, 2022		100,000
July 9, 2023		150,000
July 9, 2024		250,000
July 9, 2025		420,000
July 9, 2026		750,000
July 9, 2027		750,000
		2,500,000
Upon reaching commercial production		2,500,000
		5,000,000

As at	September 30, 2024		December 31, 2023
	$		$
Consolidated Financial Position
Cash and cash equivalents		15,519,918		14,166,196
Total assets		19,128,300		16,969,078
Non-current liabilities		100,050		86,779
Working capital¹		13,818,055		11,992,187
Equity		15,283,657		12,722,316

▪	Exploration expenditures for the three and nine months ended September 30, 2024 was $4.5 million and $13.5 million (three and nine months ended September 30, 2023 – $4.1 million and $9.6 million, respectively), including option payments totalling $0.3 million and $1.4 million, respectively (three and nine months ended September 30, 2023 – $0.15 million and $0.4 million, respectively).

▪	General and administrative expense for the three and nine months ended September 30, 2024 was $1.5 million and $3.9 million, respectively (three and nine months ended September 30, 2023 – $1.3 million and $3.3 million, respectively), including:

	o	Compensation costs related to share-based payments for the three and nine months ended September 30, 2024 of $0.3 million and $1 million, respectively (three and nine months ended September 30, 2023 – $0.3 million and $1.1 million, respectively).

	Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023			Q4 2022
	$			$			$			$			$			$			$			$
Net income (loss)		(6,300,500	)		(6,331,921	)		(4,725,236	)		(5,313,309	)		(3,749,128	)		(6,097,432	)		(3,973,790	)		(4,576,073	)
Basic and diluted income (loss) per share		(0.09	)		(0.09	)		(0.07	)		(0.09	)		(0.06	)		(0.10	)		(0.07	)		(0.09	)

	Total		Less than 1 Year		2 – 5 Years		After 5 Years
	$		$		$		$
Other lease commitments		153,545		153,545		—		—
Service contracts ¹		1,499,108		1,499,108		—		—
		1,652,653		1,652,653		—		—

	Total		Less than 1 Year		2 – 3 Years		4 – 5 Years		Greater than 5 Years
	$		$		$		$		$
First Guayabales Option¹		2,000,000		333,332		666,664		666,664		333,340
Second Guayabales Option		5,550,000		250,000		500,000		500,000		4,300,000
San Antonio Option		4,420,000		420,000		4,000,000		—		—
Other Option agreements²		3,499,739		945,922		2,553,817		—		—
		15,469,739		1,949,254		7,720,481		1,166,664		4,633,340

Material permit, license and/or other regulatory approval required to conduct operations	Material permit, license and/or regulatory approval obtained by the Corporation
Operating as a corporation requires a Public commercial registry before the Chamber of Commerce. This registry also activates a Tax Registry.	Obtained.
Prospecting activities (all exploration excluding drilling) are free activities in Colombia, and require no permit, other than authorization for land access from private owner.	The Corporation generally negotiates land access permits in advance to its operations. Currently, the Corporation has all required land access permits for its current prospecting campaign.
Drilling activities require a valid mining right and/or mining title granted by the National Mining Authority.	The Corporation is conducting exploration activities on mining titles LH0071-17, 781-17, HI8-15231, 501712 and IIS-10401 which are validly granted mining titles.
Drilling activities will require authorization for land access from private owner.	The Corporation generally negotiates land access permits in advance to its operations. Currently, the Corporation has all required land access permits for its current drilling campaign.
Exploration activities are not subject to environmental license. However, if the activities require the use of natural renewable resources (such as water catchments, dumpings and timbering, amongst others) the Corporation will require a filing, and further permission, before the regional environmental corporation in the territory.	The Corporation has been granted water rights for its drilling campaign, both in San Antonio and Guayabales projects, and may also recur to purchase water in bulk to perform its drilling campaign.
Construction of a mining project, and its operation requires an environmental license granted by an environmental authority.	The Corporation is not currently in a position to advance either of its properties to the development and construction phase of a mining project, therefore it does not require an environmental license at this time.
Construction of a mining project, and its operation requires a work plan approved by the applicable mining authority.	The Corporation is not currently in a position to advance either of its properties to the development and construction phase of a mining project, therefore it does not require a work plan at this time.

*‘Paul P. Begin’*
Paul P. Begin
Chief Financial Officer