Collective Mining Ltd.
For the period ended Dec 31, 2024. Filed Mar 26, 2025.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2024 · Filed Mar 26, 2025
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Contents
EX-99.2 · Contributed surplus – share-based payments
Contributed surplus – share-based payments
The Company has a stock option plan for its employees, directors and other eligible participants (“Participants”).
Stock options are granted to Participants to purchase common shares at a price determined at the time of grant. Fair value for stock options granted is determined on grant date using the Black-Scholes option-pricing model. Share-based compensation expense is recorded over the period the options vest, with a corresponding increase to contributed surplus. The Company issues new common shares to satisfy stock option exercises, with the proceeds received, net of any directly attributable transaction costs, credited to share capital.
| (j) | Share-based payments |
The Company has a stock option plan for its employees, directors and other eligible participants (“Participants”).
Stock options are granted to Participants to purchase common shares at a price determined at the time of grant. Fair value for stock options granted is recognized on a graded vesting method of amortization over the period during which the employee becomes entitled to exercise these equity instruments. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest and the share-based compensation expense is recorded, with a corresponding increase to contributed surplus.
COLLECTIVE MINING LTD.
Notes to the Interim Condensed Consolidated Financial Statements
(All amounts expressed in U.S. Dollars, unless otherwise indicated)
| (k) | Loss per share |
Basic loss per share is computed by dividing loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings per share. The dilutive effect of outstanding options and their equivalents are reflected in diluted earnings per share by application of the treasury stock method. The treasury stock method calculates the dilutive effect of share options assuming that the proceeds to be received on the exercise of share options are applied to repurchase common shares at the average market price of the period.
| (l) | Income taxes |
Current income taxes are recognized for the estimated income taxes payable or recoverable for the current year. Deferred income tax assets and liabilities are recognized for temporary differences between the tax and accounting bases of assets and liabilities. Deferred income tax assets and liabilities are measured using substantially enacted tax rates that apply for the years in which the temporary differences are expected to be recovered or settled. Deferred income tax assets are recognized to the extent that it is probable that the asset will be realized.
| 5. | NEW ACCOUNTING STANDARDS |
The following new standards and amendments to existing standards were issued by the IASB and are expected to be adopted by the Company in 2025 or later.
| (a) | IFRS 18, Presentation and Disclosure in Financial Statements (“IFRS 18”) - In April 2024, IFRS 18, was issued to achieve comparability of the financial performance of similar entities. The issuance of IFRS 18 is expected to have a substantive impact on financial statements, including potential changes to the structure of the income statement and various disclosure requirements. The standard, which replaces IAS 1, “Presentation of Financial Statements”, impacts the presentation of primary financial statements and notes, including the statement of earnings where companies will be required to present separate categories of income and expense for operating, investing, and financing activities with prescribed subtotals for each new category. The standard will also require management-defined performance measures to be explained and included in a separate note within the consolidated financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027, including interim financial statements, and requires retrospective application. The Company is assessing the potential impact of the standard on its consolidated financial statements. |
| 6. | RECEIVABLES AND PREPAID EXPENSES |
Receivables and prepaid expenses are made up of the following:
| As at | December 31, 2024 | December 31, 2023 |
|---|---|---|
| $ | $ | |
| Prepaid expenses | 517,442 | 280,616 |
| Advance to suppliers | 72,082 | 48,179 |
| Other receivables (a) | 94,131 | 18,371 |
| 683,655 | 347,166 |
| (a) | Other receivables |
Included in other receivables is $79,692 (December 31, 2023 – $18,371) of Harmonized Sales Tax (“HST”) refund receivable in Canada.
COLLECTIVE MINING LTD.
Notes to the Interim Condensed Consolidated Financial Statements
(All amounts expressed in U.S. Dollars, unless otherwise indicated)
| 7. | PROPERTY, PLANT AND EQUIPMENT |
Property, plant and Equipment consist of the following:
| 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 | – | 133,217 | 29,905 | 75,800 | 124,778 | 363,700 |
| Depreciation (b) | (3,326) | (124,946) | (60,418) | (66,370) | (84,797) | (339,857) |
| Net book value, December 31, 2024 | 58,749 | 343,704 | 34,123 | 96,971 | 146,515 | 680,062 |
| Cost | 65,876 | 605,459 | 220,469 | 295,611 | 244,628 | 1,432,043 |
| Accumulated depreciation | (7,127) | (261,755) | (186,346) | (198,640) | (98,113) | (751,981) |
| Net book value | 58,749 | 343,704 | 34,123 | 96,971 | 146,515 | 680,062 |
| Land and Buildings | Exploration Equipment and structures | Computer Equipment | Leasehold Improvement | Right of use assets (a) | Total | |
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | |
| Opening net book value, January 1, 2023 | – | 193,363 | 86,281 | 121,103 | 92,829 | 493,576 |
| Additions | 65,876 | 222,387 | 41,343 | 23,900 | 119,850 | 473,356 |
| Disposals and write-downs | – | – | – | – | (64,589) | (64,589) |
| Depreciation (b) | (3,801) | (80,317) | (62,988) | (57,462) | (41,556) | (246,124) |
| Net book value, December 31, 2023 | 62,075 | 335,433 | 64,636 | 87,541 | 106,534 | 656,219 |
| Cost | 65,876 | 472,243 | 190,563 | 219,809 | 119,850 | 1,068,341 |
| Accumulated depreciation | (3,801) | (136,810) | (125,927) | (132,268) | (13,316) | (412,122) |
| Net book value | 62,075 | 335,433 | 64,636 | 87,541 | 106,534 | 656,219 |
| (a) | Right of use assets |
Right of use assets as at December 31, 2024, are comprised of two warehouse leases each with an initial term of 3 years plus an extension for an additional term of 1 year, and one office lease with an initial term of 1 year plus an extension for an additional term of 1 year. The value of additions is determined as the present value of lease payments at the inception of the lease (see Note 11).
| (b) | Depreciation |
Depreciation expense for the year ended December, 31 2024 of $339,857 (year ended December 31, 2023 of $246,124) was recognized within exploration and evaluation expenses and general and administration expenses in the consolidated statement of operations and comprehensive loss (See Notes 19(a),(b)).
COLLECTIVE MINING LTD.
Notes to the Interim Condensed Consolidated Financial Statements
(All amounts expressed in U.S. Dollars, unless otherwise indicated)
| 8. | MINERAL INTERESTS |
| (a) | Guayabales Project |
The Guayabales project is comprised of exploration applications, exploration titles, two option agreements and a number of surface rights agreements. The Guayabales Project is located in the Middle Cauca belt in the Department of Caldas, Colombia.
The Company entered into two option agreements (the “First Guayabales Option” and the “Second Guayabales Option”) with third parties to explore, develop and acquire property within the Guayabales Project.
In October 2023 and May 2024, the Company secured option agreements to purchase surface rights (see Note 21).
Details of the two first option agreements are as follows:
| i. | First Guayabales Option |
On June 24, 2020, the Company entered into the First Guayabales Option. The terms of the agreement are as follows:
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.