Lake Victoria clears key hurdle to transfer Imwelo mining licence

Lake Victoria Gold (TSX-V:LVG; FRA: E1K) has cleared a key formal hurdle in its acquisition of the advanced stage Imwelo Gold Project in Tanzania. The Company announces that the Tanzania Revenue Authority (“TRA”) has finally issued the due tax assessment notice for the acquisition of the Imwelo Mining Licence (“ML”). The amount owed is within the expected range and is financially marginal.

Lake Victoria intends to pay the tax liability immediately in order to obtain the tax clearance certificate required for the final transfer of the Imwelo licence. This certificate, together with the positive vote already received from the Fair Competition Commission (“FCC”), is a prerequisite for the Mining Commission to transfer the title of the Imwelo Mining Licence to LVG. This transfer is regarded as a formality, as LVG now fulfils all the requirements. The Imwelo project is ready for production and, together with the neighbouring Dora project, has the potential for significant growth.

Marc Cernovitch, CEO and Director, commented: “We are very pleased to have reached this important milestone in the acquisition of the Imwelo project. This is the final step in completing the acquisition. The transfer of the ML triggers the second instalment of the TAIFA Group’s investment. The Company continues to negotiate with several other debt and equity groups to fully fund the development of Imwelo and expects to make such an announcement in conjunction with the completion of the acquisition.”

Simon Benstead, Executive Chairman & CFO of the Company, commented: “The TRA tax ruling is a catalytic moment for the Company as it allows us to complete the acquisition of Imwelo, proceed with the transfer of the mining licence and set our plans in motion. Whilst the process has taken longer than expected, we are now well positioned to execute our aggressive growth and consolidation strategy in Tanzania. We are grateful for the support and patience of our shareholders, partners and stakeholders during this process.”

Lake Victoria Gold stands out among the multitude of junior mining companies in many ways. The management has managed to work and build value in Tanzania for more than ten years under sometimes extremely difficult conditions, while almost all other explorers have left the country. Despite the long start-up period, the company’s share structure is intact. Management, directors and close partners hold more than 60 % of the shares. In addition, Barrick Gold has a strategic equity investment in LVG. And through its wholly owned subsidiary Taifa Mining, the largest private mining service provider in Tanzania, the powerful private Taifa Group now also has a stake in LVG. It will now increase its stake even further. The Tanzania-based Taifa Group is active in many of the country’s industries. Taifa Mining is the contractor of choice for most mines in Tanzania and has long-standing and successful relationships with companies such as Petra, De Beers, Barrick and AngloGold Ashanti. In addition, Taifa owns the largest fleet of mining equipment in Tanzania. As a company, Taifa is committed to complying with the latest internationally recognised standards. Taifa Mining will carry out all future contract mining and construction work for the Imwelo project.

Conclusion: in Germany there is a saying: “What lasts a long time will finally be good”. Around a year ago, LVG initiated what was probably the decisive change in strategy when it became apparent that the large Tembo exploration project, which the company started more than 13 years ago, would still consume a lot of money before a significant resource could be defined there. The change in focus was publicly documented by the name change from Tembo Gold to Lake Victoria Gold. With the acquisition of the production-ready Imwelo project, Lake Victoria Gold is now aiming to become a junior gold producer as quickly as possible. From this position and with the above-mentioned partners behind it, LVG can play a significant role in the consolidation of “stranded” gold assets in Tanzania in the future. We at Goldinvest.de will accompany the company on its way.