The Tanzanian Mining Commission has authorized the transfer of the Imwelo Mining License (“ML”) to Tembo Gold Tanzania Limited, a fully-owned subsidiary of Lake Victoria Gold Ltd., with effect from October 30, 2024. The authorities extended the license by 10 years, to 2035, at the same time as the transfer. The Imwelo mining license transfer puts LVG in a strong position to step up its exploration, site preparation, and development efforts. LVG is at present discussing non-dilutive finance solutions to cover the whole CAPEX component of the Imwelo Project’s development expenditures.
The acquisition of the Imwelo Project is formally subject to final approval by the TSX Venture Exchange. The second phase of Taifa Group equity participation will begin after the remaining requirements for the acquisition are met and the Imwelo Project’s final engineering design is finished, which will further aid in the project’s advancement. Taifa is going to enhance its equity participation in LVG by an additional 16 million units in accordance with the current August 2023 agreement between LVG and Taifa.
Lake Victoria Gold would get C$3,840,000 in gross profits from the set price of C$0.24 per unit. A common share of LVG and a common share purchase warrant of LVG, exercisable for two years at a price of C$0.26 per share, will be included in each unit. Taifa will supply mining services for LVG’s project under the terms of an additional mining services contract that LVG will sign with Taifa.
