Great show of confidence
The Tanzanian authorities are adding a 10-year license extension to the imminent transfer of the Imwelo mining license to prospective gold producer Lake Victoria Gold Ltd (TSXV: LVG; FRA: E1K). Lake Victoria Gold (“LVG”) announced today that an application for an extension by the vendor of the license, Tanzoz Minerals Ltd (“TML”), has been accepted by the authorities. In order for the extension to become effective, TML must pay the license renewal fee within 30 days. In addition, TML must submit an updated mining, environmental and closure plan and commit to commence 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 will make the license even more valuable to Lake Victoria Gold when it is transferred, as it provides the company with a long-term growth perspective going forward.
Marc Cernovitch, CEO and Director, commented: “We are thrilled to have received the 10-year extension of the mining license for Imwelo, which is a testament to our good relationship with the 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 continued growth and development of the Lake Victoria goldfield. We look forward to advancing our mining operations and realizing the full potential of this promising project.”
Simon Benstead, Executive Chairman & CFO of the Company, commented: “The renewal of the Imwelo Mining License for ten years is a key achievement for LVG, giving us the stability and certainty we need to move forward with 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 strong in country reputation over the many years of its presence in Tanzania. The decision by the Tanzanian authorities to extend the Imwelo mining license by 10 years immediately prior to its transfer demonstrates confidence that the future license holder, Lake Victoria Gold, is committed to sustainable mining practices. The vote also gives Lake Victoria the tailwind that the company now needs when it comes to financing the mine in the near future. Lenders in particular pay attention to the term of the license when negotiating conditions.
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