Quimbaya Gold Grants 37 Capital Option on Non-core Berrío Gold Project in Antioquia

Non-dilutive option sharpens Quimbaya’s focus on Segovia drilling

Quimbaya Gold Inc. (CSE: QIM) (OTCQX: QIMGF) (FSE: K05) has granted 37 Capital Inc. (CSE: JJJ) an exclusive 12-month option to acquire its non-core Berrío gold project in Antioquia, Colombia, for total consideration of up to $3.75 million USD in cash and shares if the option is exercised. The agreement, dated August 18, 2026, is structured so that Quimbaya issues no new shares of its own, receiving cash payments plus an approximately 19.9% equity stake in 37 Capital instead. The company said the option lets it concentrate capital and technical staff on its flagship Tahami Project in the Segovia Gold District, where a drill program is already underway.

Under the option, 37 Capital may exercise at any point over the next 12 months and can acquire the property either by taking a direct transfer of the mining concession and related applications or by buying 100% of Golden Pacifico Exploration S.A.S., the Colombian subsidiary that holds the asset. The $3.75 million USD purchase price is split between a $100,000 USD non-refundable deposit and a further $150,000 USD non-refundable deposit due within six months if the deal has not closed by then — both payments contingent on Quimbaya first arranging the minimum private-placement subscription described below — and, if the option is exercised, 7,600,000 common shares of 37 Capital valued at $760,000 CAD (about $542,857 USD) plus the balance of the price in cash. Completion is subject to exercise of the option and to acceptance by the Canadian Securities Exchange.

The Berrío project, in Puerto Berrío, Antioquia, sits in the Minas del Vapor gold district of the Segovia Gold Belt, roughly 110 kilometers east-northeast of Medellín. It covers about 8,746 hectares in total: a granted concession, contract No. 6822, of 1,218.88 hectares, plus roughly 7,529 hectares under five additional applications filed with Colombia’s Agencia Nacional de Minería (National Mining Agency). At least five small-scale mines already operate immediately south of the property, according to 37 Capital’s own disclosure on the transaction, which also discloses that the ground carries a 2% net smelter returns royalty held by AngloGold Ashanti (NYSE: AU) (JSE: ANG).

37 Capital is funding the acquisition through a concurrent non-brokered private placement of up to 5,000,000 units at $0.10 CAD each, for gross proceeds of up to $500,000 CAD; each unit carries one share and one warrant, with two warrants convertible into one additional share at $0.15 CAD for three years. Quimbaya has agreed to use its best efforts to help arrange at least 3,000,000 of those units, a $300,000 CAD minimum subscription; if that minimum is not raised, 37 Capital will not proceed and the option agreement terminates. A finder’s fee of 1,000,000 37 Capital shares is payable to an arm’s-length party in connection with the transaction.

“This transaction is disciplined capital allocation, 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,” said Alexandre P. Boivin, President and CEO of Quimbaya Gold. “That ground is our Tahami Project in Segovia: a copper-molybdenum-gold porphyry system at Tahami Center, and high-grade gold and silver veins at Tahami South, immediately adjacent to Aris Mining’s producing Segovia operations. Quimbaya is a meaningful mining-rights holder in one of Colombia’s most prolific and actively producing gold districts, and a non-dilutive approach lets us advance it on our own terms. Our next chapter is the first drill results from Tahami Center, which we expect in the third quarter of 2026.”

Tahami lies immediately adjacent to Aris Mining Corporation’s (TSX: ARIS) (NYSE: ARIS) producing Segovia Operations, a wholly owned underground mine and one of the highest-grade gold mines in the world, with a reserve grade of about 10.7 grams per ton. Segovia produced 227,762 ounces of gold in 2025, and Aris Mining has said output should rise to between 265,000 and 300,000 ounces annually following the recent installation of a second processing mill that lifted capacity 50%, to 3,000 tons per day, as Finance Colombia previously reported. Antioquia is Colombia’s top gold-producing department, according to the national Unidad de Planeación Minero Energética (Mining and Energy Planning Unit, or UPME).

If the Berrío option is exercised, Quimbaya said net proceeds would go toward continued exploration at Tahami and general working capital. Ricardo Sierra, Quimbaya’s VP Exploration, is the qualified person under National Instrument 43-101 for the technical disclosure in the transaction.