Elawa S.A.S., the subsidiary and mining division of Independence Drilling, has been commissioned by Quimbaya Gold (CSE: QIM, FSE: K05, WKN:A3DT3C) to conduct the initial drilling on the Tahami South project in Colombia. Located in the productive and promising Segovia district, the property directly borders and is in the strike direction of Aris Mining’s Segovia project. An initial exploration campaign is planned, which will include drilling with a total length of 4,000 meters.
In recent months, the Quimbaya Gold team has worked intensively to advance the Tahami South project to drill-ready status. Now the company is able to announce the successful completion of its efforts, as with the successful conclusion of a drilling contract, the first explorations at depth can start shortly on the project.
The direct proximity to Aris Mining’s Segovia project and the positive results from various preparatory aerial and ground works support the expectation of Quimbaya’s management to soon be able to demonstrate initial mineralizations on Tahami as well.
Renowned Partners Support Quimbaya Gold in Developing the Project
To maximize exploration success, Quimbaya Gold has additionally secured the support of experts who have contributed to the success of neighboring mines and projects. To this end, an additional contract has been concluded with Palmer Assets Holding for the provision of consulting services for the first drilling campaign.
Quimbaya Gold hopes to make initial gold discoveries on the Tahami South project soon. The chances for this are undoubtedly present, as the available historical data indicate high-grade gold systems, and the engaged external consultants not only have excellent relationships with local communities but have also significantly contributed to the success of other Colombian exploration projects in the past.
Thus, Quimbaya Gold’s program for the upcoming drilling work on Tahami South is nothing more and nothing less than to take the step from a promising project to a mineralization proven by drilling.
The Chosen Compensation Model Shows that External Service Providers Also Believe in the Success of the Drilling
A further special feature of the contracts now concluded with Independence Drilling and the external consultants is that the agreed compensation will not be paid in cash, but entirely in shares. New units will be issued at a price of 0.30 Canadian dollars (CAD). Each unit will consist of one Quimbaya common share and one purchase option. The option entitles the holder to acquire another common share at a price of 0.40 CAD within two years.
In total, investment costs of about 1.2 million CAD will be financed through the issuance of new shares, and it speaks for itself and for the Tahami project that both Independent Drilling and the external partners have accepted this form of payment.
If they did not also believe in the success of the work, both would have had to choose a classic remuneration by cash payment. However, through the chosen path of share compensation, they now make it clear that they believe in a significant appreciation of the project and thus of Quimbaya Gold’s company value. This is also a very clear and encouraging sign for all investors who are already invested and all those who are considering an investment.
