Quimbaya Gold Increases Size of Bought Deal Financing to $12.53 Million CAD

Quimbaya Gold Inc. (CSE:QIM) (OTCQB: QIMGF) (FSE: K05) has amended its agreement with Stifel Canada to increase the size of its previously announced private placement offering. Stifel Canada, a subsidiary of Stifel Financial Corp. (NYSE:SF), will act as the sole underwriter and bookrunner for the transaction.

The amended agreement mandates the underwriter to purchase 17,900,000 units of the company (LIFE Units) on a bought deal basis at a price of $0.70 CAD per unit. This transaction is set to generate gross proceeds of $12,530,000 CAD. The LIFE Units are intended for issuance pursuant to the Listed Issuer Financing Exemption under Canadian securities regulations.

The company has granted the underwriter an option, exercisable up to 48 hours prior to the closing date, to purchase up to an additional 15% of LIFE Units at the offering price. If fully exercised, this option would generate additional gross proceeds of up to C$1,879,500.

Each LIFE Unit in the offering consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one common share at an exercise price of $1.00 CAD per share for a period of 36 months following the closing date.

The offering is being conducted under the Listed Issuer Financing Exemption, detailed in National Instrument 45-106 – Prospectus Exemptions (NI 45-106). This exemption allows for the distribution of the securities without the usual Canadian statutory hold period. The units are being offered for sale to purchasers in qualifying jurisdictions in Canada, excluding Quebec.

An offering document related to the transaction is available on the company’s website at quimbayagold.com and on the SEDAR+ issuer profile. Prospective investors should consult the offering document before making an investment decision.

Quimbaya Gold anticipates that the net proceeds from the Offering will be allocated to advancing its current exploration programs. This includes funding drilling activities at the Tahami South project and conducting follow-up work on regional copper-gold and gold targets. The remaining funds are designated for general working capital purposes.

The Offering is scheduled to close on or about November 4, 2025, and remains subject to the fulfillment of customary closing conditions, including the acceptance of the Canadian Securities Exchange (CSE).

The securities described have not been and will not be registered under the US Securities Act of 1933 or any state securities laws. Consequently, they may not be offered or sold within the United States or to, or for the account or benefit of, “US Persons” unless registration or an applicable exemption is secured. This announcement is not an offer or solicitation to buy or sell securities.

Quimbaya Gold is focused on the acquisition and exploration of gold mining properties within prolific gold mining districts in Colombia. The company’s activities are concentrated on three primary projects located within the Antioquia Province of Colombia: the Tahami Project (Segovia region), the Berrio Project (Puerto Berrio region), and the Maitamac Project (Abejorral region).

Above photo: Quimbaya celebrates progress at its Tahami Project (photo: Twitter / @QuimbayaGoldInc)