Lake Victoria Gold (TSXV LVG / WKN A3E4WC) has big plans. Not only does it want to expand the known mineralization at the Tembo property with further exploration work, but it also wants to advance the Imwelo project toward gold production as quickly as possible!
To this end, Lake Victoria has made some important decisions in recent months and has now secured the necessary capital. Yesterday, the company, led by CEO Marc Cernovic, announced the completion of a LIFE private placement announced before. As part of this, Lake Victoria issued 34,285,715 units at CAD 0.175 per unit. This will provide the company with gross proceeds of approximately CAD 6 million – double the minimum amount of CAD 3 million.
Lake Victoria Views Successful Financing as Confirmation of Strategy
Quick details: Each unit of the financing consists of one common share and one-half warrant. Each whole warrant entitles the holder to purchase one additional Lake Victoria common share at a price of CAD 0.27 for a period of three years from the date of issuance of the warrants.
CEO Cernovitch sees the successful completion of the LIFE financing as further strong confirmation of the company’s strategy and assets in the Lake Victoria Goldfields. With this fresh capital, he explained, the company is in a good position to develop Imwelo towards production and expand the resource base at the Tembo project. Another important aspect, especially for the future, is that the fresh capital also allows Lake Victoria to continue consolidating this gold district, which the company considers one of the most promising gold regions in Africa.
In addition, and this should please shareholders – old and new – the company is already preparing to mobilize teams and contractors on site. This is to ensure that the momentum Lake Victoria gains from the financing quickly leads to progress at the project level – and thus to value creation.
Incidentally, Lake Victoria is also conducting a “traditional” private placement in addition to the LIFE financing. According to the latest announcement, this will be increased to CAD 2 million, with the price of the shares issued also at CAD 0.175. Unlike with the LIFE financing, however, in this case all securities issued are subject to the mandatory holding period of four months and one day from the date of issue.
We consider the timing of the financing to be well-chosen given the record prices for silver and gold, and view it positively that Lake Victoria Gold is now financed for the upcoming, extensive tasks. We are eager to see if the company can indeed maintain its momentum and achieve rapid progress in Tanzania!
