Quimbaya Gold: A Steady Path to Exploration Success

Quimbaya Gold Inc. (CSE: QIM) has recently completed a non-brokered private placement, raising $196,000 through the issuance of 653,332 units. Each unit consists of one common share and one warrant, exercisable at $0.40 per share for two years. The funds will be used for exploration and working capital, enabling Quimbaya to continue its focus on stability and predictability in the mining sector.

Quimbaya's strategy aligns with the author's preference for 'boring but lucrative' investments, valuing steady growth and long-term performance. The company's focus on exploration and acquisition of mining properties in stable, prolific mining districts of Colombia is a testament to this approach. By efficiently managing working capital, Quimbaya can ensure consistent growth and steady performance, making it an attractive investment opportunity.

The private placement also involved a debt settlement, with Quimbaya issuing 711,602 units to settle $213,481.53 in outstanding debt. This transaction significantly improves Quimbaya's debt-to-equity ratio, indicating enhanced financial stability. The placement bolsters Quimbaya's working capital, enabling further exploration and growth.

Insiders' participation in the private placement, acquiring 66,667 Units, signals their confidence in the company's current valuation and future growth potential. This confidence is further bolstered by the fact that their participation is exempt from minority approval and valuation requirements under MI 61-101, as the transaction does not exceed 25% of the Company's market capitalization. This suggests that insiders believe the company is undervalued and poised for growth.



Quimbaya's focus on stable, predictable growth, combined with its strong financial position and insider confidence, makes it an attractive investment opportunity. The company's exploration projects in Segovia, Puerto Berrio, and Abejorral, all located in Antioquia Department, Colombia, have the potential to yield significant returns. Assuming an average return of 15% on invested capital, the expected annual return on investment would be approximately 26.48%, based on the net proceeds of $176,532.48 after debt settlement.

In conclusion, Quimbaya Gold's private placement and debt settlement have significantly improved the company's financial health and positioned it for steady growth. With a focus on stable, predictable investments, Quimbaya is well-positioned to deliver long-term value to shareholders. The company's exploration projects in Colombia's prolific mining districts, combined with insider confidence, make it an attractive investment opportunity for those seeking 'boring but lucrative' stocks.