Quimbaya’s Gold Gambit: A Strategic Pivot to Unlock Colombian Value

VANCOUVER, BC – August 19, 2026 – In a move that exemplifies disciplined capital allocation in the junior mining sector, Quimbaya Gold Inc. has orchestrated a strategic divestment, granting an option to sell its non-core Berrio project in Colombia. The deal, valued at up to US$3.75 million, allows the company to inject non-dilutive funding into its high-priority Tahami project, signaling a sharpened focus on what it believes could be a major copper-gold discovery in the heart of a prolific mining district.

The transaction sees fellow Canadian-listed junior, 37 Capital Inc., gain the exclusive right to acquire Berrio, a gold project in Antioquia. For Quimbaya, this is not a simple sale but a calculated maneuver to monetize a secondary asset while retaining significant upside. The market responded positively, with shares in both companies rising, indicating investor approval of a strategy that balances immediate cash flow with long-term growth potential.

A Disciplined Divestment

At its core, the deal is a masterclass in the junior explorer's playbook: generating capital without diluting existing shareholders. Quimbaya will receive up to US$3.75 million in cash and shares from 37 Capital, but crucially, it issues none of its own stock. Instead, Quimbaya secures an approximately 19.9% equity interest in 37 Capital, effectively transforming a direct, capital-intensive asset into a liquid, strategic investment.

This structure provides multiple layers of benefit. The immediate cash infusion, starting with US$250,000 in non-refundable deposits, bolsters Quimbaya's treasury. If 37 Capital exercises its 12-month option, the subsequent cash and share payment will significantly fund the aggressive exploration planned for the company's flagship project. Should 37 Capital walk away, Quimbaya keeps the deposits and 100% ownership of the Berrio project, along with all exploration data gathered in the interim—a downside-protected scenario.

"This transaction is disciplined capital allocation," stated Alexandre P. Boivin, CEO of Quimbaya Gold, in a press release. "We are converting a non-core asset into cash and a retained approximately 19.9% interest, partnering with 37 Capital to put our portfolio to work, without issuing a single Quimbaya share, and putting our full focus on the ground we believe in."

Boivin’s statement underscores the strategic clarity driving the decision. By retaining an equity stake, Quimbaya ensures its shareholders continue to have exposure to any future success at Berrio, while the management team dedicates its full technical and financial resources elsewhere.

Sharpening Focus on the Crown Jewel

The ground that Quimbaya's leadership believes in is the Tahami Project. Located in the renowned Segovia Gold District, Tahami is positioned immediately adjacent to the high-grade, producing Segovia operations of Aris Mining, a fact that highlights the geological promise of the neighborhood. Quimbaya is advancing what it has identified as a large-scale copper-molybdenum-gold porphyry system at its Tahami Center target, alongside high-grade gold and silver veins at Tahami South.

By designating Berrio as 'non-core,' Quimbaya is making a clear statement about Tahami's potential. The company is currently drilling at the project, and the entire market is now anticipating the first drill results from Tahami Center, expected in the third quarter of 2026. These results will be a pivotal moment, serving as the first major test of the company's thesis that a significant porphyry system lies within its holdings. Positive results could be a powerful catalyst, validating the company's strategic pivot and potentially unlocking significant shareholder value.

The proceeds from the Berrio option are earmarked for this very purpose: to ensure the Tahami drill program is well-funded and can proceed without interruption, accelerating the path to a potential discovery.

The Partner and the Asset

For 37 Capital Inc., a junior explorer whose primary asset was previously a property in British Columbia, this deal represents a significant strategic expansion into a world-class mining jurisdiction. By acquiring the Berrio project, 37 Capital gains a foothold in Antioquia's Segovia Gold Belt, a region with a multi-million-ounce gold endowment. Berrio itself, covering over 1,200 hectares of granted concessions and an additional 7,500 hectares in applications, has known gold mineralization and identified drill targets from previous geophysical work.

While deemed 'non-core' by Quimbaya in the context of its shift to the large-scale porphyry target at Tahami, Berrio is a substantial prize for a company of 37 Capital's size. The project provides a clear path forward for exploration and potential resource definition. To fund its obligations, 37 Capital is undertaking a private placement, a standard move for a junior financing an acquisition of this nature.

Colombia's Evolving Mining Landscape

This transaction does not occur in a vacuum. It serves as a compelling case study for the current state of mining investment in Colombia. While the country has historically presented a complex mix of vast geological potential and notable political and security risks, this deal signals confidence from international players. The fact that two Canadian-listed companies can structure a sophisticated, multi-million-dollar asset transaction centered on a Colombian project speaks to an evolving and maturing investment climate, particularly within established mining regions like Antioquia.

Companies operating in the region are demonstrating that with strong local relationships, a clear understanding of the regulatory framework, and a disciplined corporate strategy, the immense mineral wealth of Colombia can be responsibly explored and developed. Quimbaya's ability to monetize a secondary asset to self-fund its primary ambition is a testament to this new paradigm, where agile strategy and sharp focus are the keys to navigating the opportunities and challenges of one of the world's most prospective mining jurisdictions.