Quimbaya Gold Inc. has entered into an option agreement granting 37 Capital Inc. the exclusive right to acquire its non-core Berrio project in Antioquia, Colombia, for up to US$3.75 million in cash and shares if exercised within twelve months.

Under the August 18, 2026 agreement, the purchaser can execute the option by transferring concession contract No. 6822 or acquiring subsidiary Golden Pacifico Exploration S.A.S. The structure requires US$250,000 in non-refundable deposits during the option period. Upon exercise, consideration includes 7,600,000 common shares of the purchaser at a deemed price of C$0.10 per share—representing an approximate 19.9% equity interest—plus the cash balance of the purchase price.

The transaction is non-dilutive to Quimbaya, which issues no shares and retains exposure through its equity stake while freeing up capital and resources. If the option is not exercised, Quimbaya keeps a 100% interest in Berrio alongside all exploration data and deposits. Completion remains subject to option exercise and Canadian Securities Exchange acceptance.

Proceeds will fund exploration at Quimbaya's flagship Tahami Project in the Segovia Gold District and support working capital. Quimbaya completed geophysical and geological programs at Tahami South confirming gold and silver vein continuity, and is drill testing a copper-molybdenum-gold porphyry system at Tahami Center with results expected in the third quarter of 2026. Nearby, Soma Gold Corp. received approval to increase production at the La Aurora Mine from 25 to 75 tons per day.

“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. 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. Our next chapter is the first drill results from Tahami Center, which we expect in the third quarter of 2026.”

— Alexandre P. Boivin, CEO

Read the full announcement: Quimbaya Gold Grants Option to Sell Non-Core Berrio Project for Up to US$3.75 Million in Cash and Shares