Lake Victoria Gold announces key milestone in the acquisition of the Imwelo Mining License

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

Simon Benstead, Executive Chairman & CFO of the Company, commented: “We are delighted to have received approval from the FCC in Tanzania. As we have 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 advancement of Imwelo and the previously announced acquisition of Dora are consistent 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”) had 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/)

The Imwelo license is located in the Geita Greenstone Belt 12km 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 3.15 g/t, an indicated resource of 95,700 ounces Au at 1.95 g/t and an inferred resource of 153,900 ounces at 1.53 g/t.

LVG’s wholly owned subsidiary, TGTL, will acquire the ML for a consideration of C$5,500,000, consisting of approximately 23.6 million common shares with a deemed value of C$0.22 per share. The detailed design of the major infrastructure and plant facilities is currently being finalized. The major facilities have already been commissioned and the ball mill is currently being refurbished 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 prolific Lake Victoria Goldfield in Tanzania. LVG is supported by Tanzania’s Taifa Group, a diversified group of companies with interests in mining, telecommunications, oil and gas, agribusiness, pharmaceuticals and leather, among others. Taifa Mining, a wholly owned subsidiary of Taifa, already has an interest in LVG and will further increase this interest as part of the Imwelo acquisition. Taifa Mining will carry out all contract mining and construction work for the Imwelo project. Taifa Mining is the largest mining company in Tanzania with over 30 years of mining experience. Taifa 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. Taifa also owns the largest fleet of mining equipment in Tanzania.

Conclusion: LVG is familiar with the process of 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 easier and faster with a producing asset behind it. We are convinced that LVG investors will be richly rewarded for their patience and long wait in the end, especially in a rising gold market. LVG has a years-long confidence advantage over its competitors in Tanzania that cannot be made up quickly. It is interesting to compare LVG with somewhat more advanced companies such as the Canadian TRX Gold Corporation (TSXV: TRX; CAD 150 million market capitalization) or the Australian Orecorp Limited (ASX: ORR; AUD 270 million market capitalization). At the current share price of CAD 0.175, LVG is valued at less than CAD 20 million.