Most Time-Consuming Part of the Process Completed

The Tanzanian Fair Competition Commission (FCC) has given the green light to Canadian Lake Victoria Gold (TSX-V: LVG, FRA: E1K) for the acquisition of the Imwelo mining license from Tanzoz Minerals Limited. The approval is a crucial step towards the final transfer of the fully permitted mining license ML538/2015. With the FCC certificate and the tax clearance certificate expected shortly, all prerequisites are in place for Lake Victoria to submit the formal application for license transfer to the Mining Commission of Tanzania.

Simon Benstead, Executive Chairman & CFO of the company, stated: “We are pleased with the approval from the FCC in Tanzania. As we learned from our transaction with Barrick, this is the most time-consuming part of the process, and we expect the acquisition to be completed in the coming weeks. The acquisition and further development of Imwelo, as well as the previously announced acquisition of Dora, are in line with the company’s growth strategy to establish itself as a fast-growing gold producer, mine developer, and exploration company in East Africa.”

Lake Victoria Gold (“LVG”) announced the transformative acquisition of Imwelo on August 10, 2023. (https://lakevictoriagold.com/tembo-gold-announces-transformative-acquisition-and-landmark-investment-from-tanzanian-strategic-investor/)

Imwelo License Includes Hundreds of Thousands of Ounces of Historical Gold Resources

The Imwelo license is located in the Geita Greenstone Belt, 12 km west of Anglogold-Ashanti’s Geita Gold Mine. The Imwelo project comprises a 3.85 km2 ML and an 8.5 ha PML with a historical resource estimate of 42,000 ounces Au at a grade of 3.15 g/t, an indicated resource of 95,700 ounces of Gold at 1.95 g/t, and an inferred resource of 153,900 ounces at 1.53 g/t.

LVG’s 100% subsidiary, TGTL, will acquire the ML for a consideration of C$5,500,000, consisting of approximately 23.6 million common shares at an assumed value of C$0.22 per share. The detailed planning of the main infrastructure and plant facilities is currently being completed. The main equipment has already been ordered; the ball mill is currently being overhauled in South Africa.

Lake Victoria Gold intends to strategically leverage its unique position and experience in Tanzania to establish itself as the go-to partner for the consolidation of advanced projects in the productive Lake Victoria Goldfield in Tanzania. LVG is supported by the Tanzanian Taifa Group, a diverse business group with interests in mining, telecommunications, oil and gas, agriculture, pharmaceuticals, and leather, among others. Taifa Mining, a wholly-owned subsidiary of Taifa, already has a stake in LVG and will further increase this stake as part of the Imwelo acquisition. Taifa Mining will carry out all contract mining and construction work for the Imwelo project. Taifa Mining is Tanzania’s largest mining company with over 30 years of experience in mining. Taifa is the preferred contractor for most mines in Tanzania and maintains long-standing and successful relationships with companies such as Petra, De Beers, Barrick, and AngloGold Ashanti. Additionally, Taifa owns the largest fleet of mining equipment in Tanzania.

Conclusion: LVG is familiar with the procedure for transferring licenses in Tanzania from its deal with Barrick Gold. The process takes time, but it is transparent and reliable. The acquisition of the Imwelo project and the neighboring Dora project are transformative for LVG because LVG will become a gold producer in a very short time. Further growth can be achieved much more easily and quickly with a producing asset in the background. We are convinced that LVG investors will be richly rewarded for their patience and the long waiting time in the end, especially in a rising gold market. LVG has a years-long acquired trust advantage in Tanzania over its competitors, which is not easy to catch up. An interesting comparison is with somewhat more advanced companies such as the Canadian TRX Gold Corporation (TSXV: TRX; 150 million CAD market cap) or the Australian Orecorp Limited (ASX: ORR; 270 million AUD market cap). At the current price of 0.175 CAD, LVG is valued at less than 20 million CAD.