Lake Victoria Gold to finalise detailed design for Imwelo Gold Project at the end of February

Lake Victoria Gold Limited. (TSXV: LVG; FRA: E1K), formerly Tembo Gold, announces further progress on the transfer of the Imwelo mining licence in Tanzania. In parallel to the formal agreement with the authorities, the company has already procured a suitable ball mill in South Africa and is converting it for the project. A 15% deposit has been paid to secure the mill. With this step, Lake Victoria Gold wants to ensure that Imwelo can start production within 12 months as planned. The final detailed design for the mine, including electrics, steelwork and pipework, has been awarded to the South African engineering company Turaflo Pty Ltd. It is expected to be finalised by the end of February. Lake Victoria Gold announces that 90% of the compensation for the resettlement of land users has been paid. The compensated land users have 30 days to vacate the area.

Simon Benstead, Executive Chairman & CFO of the company, said: “Our priorities are to obtain final approvals on site while advancing Imwelo towards production. We are on track to make 2024 a transformative year for Lake Victoria Gold as we continue to grow, diversify and consolidate.”

Tanzanian state to become joint venture partner

Under the Mining State Participation Regulations in force since September 2022, the Tanzanian State is permitted to acquire a minimum 16% inalienable interest in the company that will hold ownership of the Imwelo Project. In addition, a royalty will be payable to the Tanzanian Government on the gross value of minerals produced from the Imwelo Project at a rate of 6% for gold. Lake Victoria Gold has submitted a First Schedule of the Regulations governing the establishment of a joint venture company with the government shareholder. At the same time, Lake Victoria Gold is clarifying further bureaucratic details with the tax authorities.

In order to transfer the mining licence to the company’s subsidiary in Tanzania, Lake Victoria Gold also needs the approval of the Fair Competition Commission (“FCC”). The company has already submitted an application for approval before the end of 2023. The FCC has determined that the merger application and all submitted documents were complete and that the review of the transaction approval can continue. The FCC has committed to granting approval within 90 days of 18 December 2023.

Taifa Mining earmarked for contract mining at Imwelo

It is known that Gold Barrick Gold and the private Tanzanian conglomerate Taifa Group are involved in Lake Victoria Gold. Taifa Group, through its subsidiary 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. As a company, Taifa is committed to adopting and adhering to the latest internationally recognised standards in all aspects of its business.