Major Vote of Confidence
The Tanzanian authorities are adding a 10-year extension to the Imwelo mining license on top of its imminent transfer to the aspiring gold producer Lake Victoria Gold (TSXV LVG / WKN A3E4WC). As Lake Victoria Gold (“LVG”) announces today, a corresponding extension application from the license seller, Tanzoz Minerals Ltd. (“TML”), has been accepted by the authorities. For the extension to take effect, TML must still pay the license renewal fee within 30 days. Additionally, TML must submit updated mining, environmental, and closure plans and commit to beginning development within 90 days. The LVG and TML team is currently preparing the relevant documents and will submit them in the coming days. The extension makes the license even more valuable for Lake Victoria Gold upon its transfer, as it secures a long-term growth perspective for the company in the future.
Marc Cernovitch, CEO and Director, commented: “We are thrilled to have received the 10-year extension of the Imwelo mining license, which is a testament to our good relationships with Tanzanian authorities and our commitment to sustainable mining practices. This renewal allows us to realize our long-term vision for the Imwelo project and ensure continuous growth and development of the Lake Victoria goldfield. We look forward to advancing our mining operations and unlocking the full potential of this promising project.”
Simon Benstead, Executive Chairman CFO of the company, stated: “The ten-year extension of the Imwelo mining license is a crucial success for LVG, providing us with the necessary stability and security to advance our ambitious plans. This renewal not only strengthens our position in the region but also enhances our ability to deliver sustainable value to our shareholders.”
Conclusion: Lake Victoria Gold has built a good reputation during its long years of presence in Tanzania. The decision of the Tanzanian authorities to extend the Imwelo mining license by 10 years immediately before its transfer reflects the trust that the future license holder, Lake Victoria Gold, is committed to sustainable mining practices. The vote also gives Lake Victoria the momentum it needs now as it soon approaches the financing of the mine. Lenders, in particular, pay attention to the duration of the license when negotiating terms.
