Lake Victoria GOLD Provides a General Corporate Update
LAKE VICTORIA GOLD PROVIDES A GENERAL CORPORATE UPDATE
May 8th, 2024, Vancouver, BC – Lake Victoria Gold (TSX-V:LVG) (“LVG”, or the “Company”) – is pleased
to provide an update and report on the progress of corporate and technical developments.
Imwelo Property Update
The recent Fair Competition Commission approval for the acquisition of the Imwelo Mining License (“ML”)
represents an important regulatory milestone, moving the project closer to the transfer of the ML.
Concurrently, the Tanzania Revenue Authority is in the process of assessing the capital gains tax due on
this transaction, with a decision expected shortly. This tax assessment and payment is crucial as it
represents the final hurdle before the official transfer of the ML. The completion of final engineering and
the transfer of the ML triggers the second tranche of investment from TAIFA Group. The Company is in
advanced negotiations with a number of other debt and equity groups in order to fully fund the
development of Imwelo.
The project has made significant progress since final detailed engineering design began in November
2023. With the commencement of preparatory earthworks and infrastructure development, the project
is moving forward as planned. The clearing and stockpiling of topsoil at the tailings storage facility and
open pit location mark important preparatory steps for the upcoming construction. The ball mill (longest
lead item) is on order with a deposit paid, and its refurbishment underway. Compensation for landowners,
a critical aspect of the project's community relations, is nearly complete for the second open pit mining
area. The completion of a 300,000 -liter water tank is a significant milestone, ensuring the project's
construction water supply needs are met. The construction and commissioning phase is on a clear
timeline, expected to take approximately 12 months following the closing of acquisition and financing.
The Company has also submitted a ten -year renewal application for the ML to the Tanzania Mining
Commission in order to secure the project's long-term operational viability. Overall, these developments
reflect a project that is well underway and advancing towards its operational phase.
Tembo Property Update – Barrick Exploration
The Tembo Project originally comprised seven prospecting licenses adjacent to Barrick Gold’s Bulyanhulu
Mine located in the Lake Victoria goldfield , Tanzania. On December 7, 2021 the Company and Barrick
Gold Corporation and Bulyanhulu Gold Mine Limited ( collectively “Barrick”) entered into an agreement
whereby the Company agreed to sell to Barrick six of its non -core prospecting licenses ("Acquired
Licenses") in the Tembo Project. Barrick also agreed to conduct exploration with minimum expenditures
totaling US$9,000,000 on the Acquired Licenses over four years. Barrick has also agreed to pay the
Company contingent payments totaling up to US$45,000,000 calculated on the inferred, indicated and
measured gold mineral resources identified on the Acquired Licenses (See April 2022 Press Release).
Recent activity has included a broad spaced Aircore drilling program (50m borehole interval along 400m
spaced lines) through Mbuga filled valleys to establish the geochemical and geological framework beneath
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this cover. 382 drill holes totaling 5607m were completed by the end of Q4 of 2023. Drilling will
recommence once the rainy season ends in Q2 of 2024. Expenditure to date by Barick is approximately
US$1,650,000 to April 21, 2024 (2nd Anniversary date of the agreement), ~18% of the expenditure
requirement over the 4 -year commitment period. Barick is expected to spend approximately
US$2,000,000 through April 2025 (US$500,000 on continued Aircore drilling, US$750,000 on 6000m of
targeted Reverse Circulation drilling, US$750,000 on 2500m of structural and geological frame work
Diamond drilling).
“Barick's expenditure reflects a commitment to thorough exploration, with a substantial budget allocated
for various drilling techniques aimed at different depths and geological targets, with a focus on both broad
exploration and targeted drilling to refine the understanding of the geological framework. This phased
approach allows for data- driven decision- making for future drilling operations and potential resource
development” said Marc Cernovitch President & CEO.
Simon Benstead, Executive Chairman & CFO of the Company, stated: “ The process of closing the
acquisition of Imwelo has taken longer than we anticipated but we are very close to the finish line. We are
grateful for the support of our shareholders, partners and stakeholders as we have navigated this process
in Canada and Tanzania. We will soon be perfectly positioned to deliver on our aggressive growth strategy
and take advantage of a what seems to be an increasingly bullish gold market environment.”
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 h ighly 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 (PR links) 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 validatio n that comes with the support and equity investment
from Barrick Gold (Barrick PR and/or deal slide link) and recent strategic partnership with Taifa Group (link
to PR).
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 l argest 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.
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On Behalf of the Board of Directors of the Company,
Simon Benstead,
Executive Chairman & CFO
For more information please contact:
Simon Benstead
Executive Chairman & CFO
Phone:+ 1 604-685-9316
Email: [email protected]
Marc Cernovitch
CEO & Director
Phone: +1 647-203-7868
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS NEWS RELEASE.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward- looking information” within the meaning of applicable
Canadian securities legislation, including: future exploration plans with respect to the Imwelo Project, gold
production on the Imwelo Project and the timing thereof, the terms of the Acquisition and the Financing,
contract work on the Imwelo Project by Taifa Mining, entering into a joint venture agreement and
shareholder agreement with the Tanzanian government and the terms and timing thereof, the closing of
the Acquisition and the Financing, including the satisfaction of the closing conditions thereunder and the
expected timing thereof, and receipt of all regulatory approvals, including the approval of the TSX Venture
Exchange for the Acquisition and Financing and the Tanzania Fair Competition Commission for the
Acquisition. All statements in this news release that address events or developments that we expect to
occur in the future are forward-looking statements. Forward-looking statements are statements that are
not historical facts and are generally, although not always, identified by words such as “expect”, “plan”,
“anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or
“believe” and similar expressions or their negative connotations, or that events or conditions “will”,
“would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the
opinions and estimates of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are
beyond LVG’s control, including risks associated with or related to: the completion of the Acquisition, the
Financing and related transactions, including receipt of all regulatory approvals and third-party consents,
the volatility of metal prices and LVG’s common shares; changes in tax laws; the dangers inherent in
exploration, development and mining activities; the uncertainty of reserve and resource e stimates; not
achieving development or production, cost or other estimates; actual exploration or development plans
and costs differing materially from the Company’s estimates; the ability to obtain and maintain any
necessary permits, consents or authorizations required for mining activities; environmental regulations or
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hazards and compliance with complex regulations associated with mining activities; climate change and
climate change regulations; fluctuations in exchange rates; the availability of financing; financing and debt
activities; operations in foreign and developing countries and the compliance with foreign laws, including
those associated with operations in Tanzania and including risks related to changes in foreign laws and
changing policies related to mining and local ownership requirements or resource national ization
generally, including in response to the COVID -19 outbreak; remote operations and the availability of
adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for
mining operations; shortages or cost incre ases in necessary equipment, supplies and labour; regulatory,
political and country risks, including local instability or acts of terrorism and the effects thereof; the
reliance upon contractors, third parties and joint venture partners; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an
uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with
other mining companies; co mmunity support for LVG’s operations, including risks related to strikes and
the halting of such operations from time to time; conflicts with small scale miners; failures of information
systems or information security threats; the ability to maintain adequate internal controls over financial
reporting as required by law; compliance with anti -corruption laws, and sanctions or other similar
measures; social media and LVG’s reputation; and other risks disclosed in the Company’s public filings.
LVG’s forward-looking statements are based on the opinions and estimates of management and reflect
their current expectations regarding future events and operating performance and speak only as of the
date hereof. LVG does not assume any obligation to update forward -looking statements if circumstances
or management’s beliefs, expectations or opinions should change other than as required by applicable law.
There can be no assurance that forward-looking statements will prove to be accurate, and actual results,
performance or achievements could differ materially from those expressed in, or implied by, these forward-
looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-
looking statements will transpire or occur, or if any of them do, what benefits or liabilities LVG will derive
therefrom. For the reasons set forth above, undue reliance should not be placed on forward- looking
statements.