Quimbaya Gold's Full Ownership of Tahami Project Positions for Strategic Dominance in Segovia Gold District

In the volatile world of junior mining equities, retaining full control over a high-potential asset often separates fleeting opportunities from enduring value. Quimbaya Gold Inc. (CSE: QIM) has taken a decisive step toward the latter by retaining 100% ownership of its Tahami Project in the Segovia Gold District following the termination of its joint venture Letter of Intent (LOI) with Denarius Metals. This outcome not only preserves Quimbaya's operational autonomy but also amplifies its ability to capitalize on the project's strategic advantages in one of Colombia's most historically productive mining regions.

Strategic Control: A Double-Edged Sword

The termination of the 50/50 joint venture with Denarius Metals, announced on August 1, 2025, initially seemed like a setback. Denarius had cited “unfavorable social conditions” for small-scale mining in the area, despite its own legacy in Colombia's mining sector. However, the decision to exit the partnership ultimately strengthens Quimbaya's position. By retaining full ownership, Quimbaya avoids dilution of equity, control over decision-making, and the need to split profits with a partner. This is critical in a jurisdiction like Colombia, where community relations and regulatory compliance are often complex and time-consuming.

The Tahami Project, spanning 17,000 hectares, is already a magnet for activity. Over 150 artisanal miners operate on its concessions daily, and the project is adjacent to Aris Mining's Segovia Operations—a high-grade gold producer. Denarius's withdrawal underscores the challenges of formalizing artisanal mining under a joint venture model, but it also highlights Quimbaya's unique advantage: direct engagement with local stakeholders. Quimbaya's management has consistently emphasized community partnerships, which are essential for securing the “social license to operate” in resource-rich but politically sensitive regions.

Unlocking Long-Term Value in a High-Grade District

The Segovia Gold District is no stranger to success. Aris Mining's Segovia Operations, located just across the concession boundary, have consistently delivered high-grade gold production. Quimbaya's Tahami Project shares the same geological architecture—a district-scale vein system with historical artisanal activity and underexplored potential. By retaining full ownership, Quimbaya can prioritize exploration in areas adjacent to Segovia, where the likelihood of discovering high-grade deposits is statistically higher.

The company's planned 4,000-meter drilling campaign at Tahami South is a pivotal catalyst. With full control, Quimbaya can allocate resources without negotiating with a partner, accelerating timelines and reducing administrative friction. This agility is rare in the junior mining sector, where joint ventures often slow progress due to conflicting priorities. Moreover, the project's existing infrastructure—roads, power, and proximity to markets—reduces capital expenditures, making it a cost-effective platform for discovery.

Denarius's Exit: A Lesson in Risk Management

Denarius's decision to terminate the LOI was rooted in its due diligence findings. The company concluded that the social and operational risks of formalizing artisanal mining under a joint venture model outweighed potential rewards. While this reflects poorly on the feasibility of small-scale mining in the region, it also serves as a cautionary tale for investors. Quimbaya's ability to retain full ownership despite these challenges speaks to its management's experience and resilience.

Critics might argue that the termination of the LOI signals a lack of industry confidence in the Segovia District. However, this overlooks Quimbaya's long-term vision. The company is not merely a junior explorer—it is a developer with a regional focus. By maintaining 100% ownership, Quimbaya can tailor its approach to the unique dynamics of the district, leveraging its local expertise to navigate regulatory hurdles and community expectations.

Investment Implications

For investors, Quimbaya's full ownership of Tahami represents a compelling risk-rebalance. The company now controls a large, underexplored asset in a proven gold district, with no dilution from a partner. This positions it to capture 100% of the upside from discoveries or production, should it choose to integrate artisanal mining operations. Additionally, the proximity to Aris Mining's operations creates a de facto “value halo” effect, where Quimbaya's exploration success could indirectly validate the district's potential.

However, risks remain. Colombia's mining sector is not immune to political shifts or community unrest. Quimbaya must continue to demonstrate responsible practices to maintain its social license. That said, the company's track record in Antioquia—where it operates the Berrio and Maitamac Projects—suggests it is up to the task.

Conclusion

Quimbaya Gold's retention of 100% ownership in the Tahami Project is a strategic masterstroke. It consolidates control over a high-potential asset in one of Colombia's most promising gold districts, while avoiding the pitfalls of a joint venture structure. For investors, this outcome reinforces Quimbaya's commitment to long-term value creation and operational agility. As the company advances its drilling campaign and explores pathways to production, the Tahami Project could become a cornerstone of its growth story. In a sector where control often determines success, Quimbaya has positioned itself to reap the rewards of its bold decision.

Investment Recommendation: Quimbaya Gold's full ownership of Tahami, combined with its regional focus and strong local management, makes it a high-conviction play for investors seeking exposure to Colombia's gold sector. While volatility is expected, the company's strategic flexibility and the district's exploration potential justify a long-term, patient approach.