Quimbaya Gold (CSE: QIM, FSE: K05, WKN:A3DT3C) originally planned to carry out a capital increase of two million Canadian dollars (CAD). However, the entry of another strategic investor group, following the recent involvement of Colombian mining legend Serafino Inacono in the company, now makes it possible to double the private placement to four million CAD. The entry of the major investor not only demonstrates their confidence in Quimbaya Gold and the company’s exploration strategy in Colombia but also proves Quimbaya Gold’s ability to successfully acquire new capital even in difficult times.
All participants in the capital increase are united by following a long-term vision, which they are now implementing with an investment in Quimbaya Gold. Quimbaya itself sees this commitment as a significant validation of its regional exploration strategy in Colombia and the progress achieved so far on its flagship Tahami project.
The private placement is expected to close on or around June 27, 2025, and the newly issued securities are subject to a hold period of four months and one day under applicable Canadian securities laws. As part of the increased offering, the company may issue up to 11,428,572 units at a price of 0.35 CAD per unit, corresponding to a total gross proceeds of approximately 4,000,000 dollars.
Each unit consists of one common share of the company and one option entitling the holder to acquire an additional share at a price of 0.60 CAD per share. The option has a term of 36 months. The newly raised funds will be used to promote exploration on the three gold deposits in Colombia that are 100% controlled by Quimbaya Gold. The focus will be particularly on the Tahami project in Antioquia.
Quimbaya Gold’s Tahami Project Will Continue to be the Focus
It covers an area of 2,023 hectares, is located only 1.8 kilometers northeast of Aris Mining’s Segovia operation, and currently represents Quimbaya’s most promising project. Here, Quimbaya Gold sees the potential for a district-scale gold discovery. The work focuses on a structural corridor known for high-grade epithermal vein systems.
Alexandre P. Boivin, the President and CEO of Quimbaya Gold, expressed great enthusiasm about the entry of the strategic investor group and the massive expansion of the capital measure. He stated: “The conviction of a well-informed, long-term oriented strategic investor with an impressive track record in the industry speaks volumes. We have always believed in the strength of our portfolio, and this capital not only increases our flexibility but also accelerates our ability to demonstrate this potential with our upcoming drilling campaign.”
