Vancouver, British Columbia – March 12, 2024 – Lake Victoria Gold Ltd. (TSXV: LVG) (“LVG”, or the “Company”)is pleased to announce a significant step forward in the Company’s subsidiary Tembo Gold (T) Ltd’s (TGTL) acquisition of the Imwelo mining licence from Tanzoz Minerals Limited announced on August 10, 2023 (https://lakevictoriagold.com/tembo-gold-announces-transformative-acquisition-and-landmark-investment-from-tanzanian-strategic-investor/) with the Tanzanian Fair Competition Commission approval granted on February 29, 2024.
Highlights
- In Q4 2023, Tembo Gold (T) Ltd (TGTL) submitted an application for approval of the acquisition of ML538/2015 from Tanzoz Minerals Limited, to the Fair Competition Commission (FCC) of Tanzania.
- After review of the information provided, the FCC unconditionally approved the acquisition on February 29, 2024.
- ML538/2015 is a fully permitted mining licence.
- The ML is located in the Geita greenstone belt 12km west of Anglogold-Ashanti’s Geita Gold Mine.
- The Imwelo project comprises a 3.85km2 ML and a 8.5ha PML containing a historical resource estimate of 42,000oz Au measured resource at 3.15g/t, indicated resource of 95,700oz Au at 1.95g/t and 153,900oz inferred resource at 1.53g/t.
- TGTL will acquire the ML for a consideration of C$5,500,000 consisting of approximately 23.6 million common shares at a deemed value of C$0.22 per share.
- Detailed design of the major infrastructure and plant facilities is currently being finalized.
- Orders have been placed for key plant equipment with the ball mill presently being refurbished in South Africa.
Next Steps
- The acquisition agreement has now been submitted to the Tanzanian Revenue Authority for the assessment of capital gains tax (CGT) payable by TML. The tax assessment is expected to be completed in the coming weeks.
- On payment of the CGT by TML, the TRA will issue a tax clearance certificate.
- The following step will be the submission of the licence transfer application to the Mining Commission of Tanzania, together with the requisite supporting documentation (FCC Certificate and TRA Tax Clearance Certificate) and application fee.
- On approval, the Mining Commission will advise the company that the transfer has been approved and issue a certificate confirming the new ownership.
Simon Benstead, Executive Chairman & CFO of the Company, stated: “We are pleased to receive this 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 to have the acquisition closed in the coming weeks. The acquisition and advancement of Imwelo and the previously announced acquisition of Dora are firmly in line with the Company’s growth strategy of establishing itself as a rapidly growing gold producer, mine developer and exploration company in East Africa.”
About Lake Victoria Gold (LVG):
Lake Victoria Gold is a rapidly growing gold exploration and development company listed on the TSX Venture Exchange under the symbol LVG. Leveraging our unique position and experience, the Company is principally focused on growth and consolidation in the highly prolific and prospective Lake Victoria Goldfield in Tanzania.
The Company has a 100% interest in the Tembo project which has over 50 thousand meters of drilling and is located adjacent to Barrick’s 20Moz Bulyanhulu Mine. The Company recently announced the acquisition of two deposits that support our objective of accretive growth and consolidation. The Imwelo project and Dora project both have potential for significant growth.
LVG has assembled a highly experienced team with a track record of developing, financing, and operating mining projects in Africa with management, directors and partners owning more than 60% of the shares. Notably, the Company is grateful for the validation that comes with the support and equity investment from Barrick Gold and recent strategic partnership with Taifa Group.
Taifa Group (a diverse group of companies with interests in amongst others, Mining, Telecoms, Oil & Gas, Agri Business, Pharmaceuticals and Leather) has entered into an agreement with the Company to obtain an equity stake in the Company and through its wholly owned subsidiary Taifa Mining (a wholly Tanzanian owned company), or other nominees. Taifa Mining will also carry out all the contract mining and civil works for the Imwelo project. Taifa Mining is Tanzania’s largest mining contractor with over 30 years mining related experience. Taifa have been the contractor of choice to most mines in Tanzania and have maintained long and successful relationships with companies such as Petra, De Beers, Barrick, and AngloGold Ashanti. In addition, 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 recognized standards throughout all aspects of its business.
On Behalf of the Board of Directors of the Company,
Simon Benstead
Executive Chairman & CFO
Phone: +1 604-685-9316
Email: sbenstead@lakevictoriagold.com
For more information please contact:
Simon Benstead
Executive Chairman & CFO
Phone:+ 1 604-685-9316
Email: sbenstead@lakevictoriagold.com
Marc Cernovitch
CEO & Director
Phone: +1 647-203-7868
Email: mcernovitch@lakevictoriagold.com
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