Quimbaya closes $14.4-million bought deal offering

Executive Summary

• Quimbaya Gold Inc. has closed a bought deal private placement raising C$14.4 million in aggregate gross proceeds.
• The financing was conducted under the Listed Issuer Financing (LIFE) exemption with Stifel Canada acting as sole underwriter and bookrunner.
• Proceeds are designated for advancing exploration programs, specifically drilling at the Tahami South project and regional target follow-up, alongside general working capital.

Key Details

• Aggregate Gross Proceeds: $14,409,500 (including full exercise of the underwriter's overallotment option).
• Units Sold: 20,585,000 LIFE units.
• Price Per Unit: 70 cents per listed issuer financing exemption unit.
• Underwriter: Stifel Canada (sole underwriter and bookrunner).
• Unit Composition: Each LIFE unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms (Investors):
  • Exercisable to acquire one additional common share per warrant.
  • Exercise Price: $1.00 per warrant share.
  • Duration: 36 months following the closing date.
• Use of Proceeds:
  • Advancing exploration programs, including drilling at the Tahami South project.
  • Follow-up work on regional copper-gold and gold targets.
  • General working capital.
• Regulatory Basis: Offered pursuant to the Listed Issuer Financing (LIFE) exemption under National Instrument 45-106 in all Canadian provinces except Quebec, and in certain offshore jurisdictions.
• Hold Period: LIFE units issued to substituted purchasers are not subject to a statutory hold period under applicable Canadian securities laws.
• Underwriter Compensation:
  • Cash Commission: $722,769.60.
  • Broker Warrants Issued: 1,118,208 broker warrants.
  • Broker Warrant Terms: Entitles holder to purchase one common share for 36 months following closing at an exercise price of 70 cents per broker share.
• Finder Compensation: An eligible finder received a cash commission of $59,976.