Lake Victoria GOLD Provides an Update ON the Imwelo GOLD Project Acquisition
LAKE VICTORIA GOLD PROVIDES AN UPDATE ON THE IMWELO GOLD PROJECT ACQUISITION
January 1 8, 2024, Vancouver, BC – Lake Victoria Gold Limited. (TSX V:LVG) ( “LVG”, or the “Company”) – is
pleased to announced progress on the acquisition of the Imwelo Project mining licence from Tanzoz Minerals
Limited in Tanzania (the “Acquisition”). Under the terms of the acquisition agreement , LVG’s subsidiary Tembo
Gold Tanzania Limited (TGTL) is acquiring the Imwelo mining licence ML538 (the Imwelo Project), which is planned
for gold production within 12 months. For further information regarding the Acquisition, see the Company’s press
releases dated August 10, 2023, September 22, 2023 and November 7, 2023.
Progress towards closure and finalisation of the transaction and transfer of the mining licence to the Company’s
subsidiary in Tanzania includes: submission of the requisite application for approval to the Fair Competition
Commission and commencement of discussions with the agent; submission to the Tanzania Revenue Authority of
a letter to determine a deferred realisation date for the transaction and an advance tax calculation pending
transaction completion; final land compensations over future mining areas of the project have been paid; a 15%
deposit payment made for the ball mill being refurbished for the project; and final detailed engineering design is
underway. Discussions are to co mmence soon with the Mining Commission in respect of the Tanzanian
Government’s legislated 16% free carried interest.
Highlights
• Fair Competition Commission (FCC): The application for FCC approval of the transaction was submitted and
the application fee paid in December 2023 . FCC undertakes to provide approval within 90 days of 18
December 2023. FCC determined that the ‘merger’ application and all documents submitted were complete
and the consideration of the transaction approval would proceed.
• Tanzania Revenue Authority (TRA): A request for d etermination of a deferred realisation and advance tax
calculation pending completion of the acquisition has been submitted and the TRA response is imminent.
A number of conditions precedent for closure of the acquisition agreement have to be met and the
purchase consideration will only become payable at that stage, at which stage the tax liability arising from
the transaction will be settled.
• Final land compensations have been paid over an area covering the western shear zone, which is the phase
2 area of the mining project. 90% of the compensations are complete. The compensated land users have
30 days to vacate the area.
• A suitable ball mill has been sourced in South Africa and preparation of the mill commenced. A 15% deposit
has been paid to secure the mill.
• Final detailed engineering design is underway including electrical reticulation; equipment specifications;
civil foundation design; instrumentation requirements, structural steelwork; and pipes and pump
requirements and layout. This is being carried out by Turaflo Pty Ltd, South Africa. Expected completion
date is by end of February.
• In September 2022 the Tanzanian Government published revised regulations ( THE MINING (STATE
PARTICIPATION) REGULATIONS, 2022) whereby the Company is obliged to commence negotiations with the
Mining Commission to enable the Government to acquire its minimum of 16 % free carried undilutable
shareholding in the entity that will hold title to the Imwelo Project. These negotiations will lead to the
signing of a joint venture agreement largely governed by the Framework Agreement (First Schedule of the
Regulations), a Shareholders Agreements and the incorporation of a joint venture company with the
Government Shareholder. 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.
Simon Benstead, Executive Chairman & CFO of the Company, stated: “We are happy with the progress being made
as we work towards finalizing the acquisition of the Imwelo project. Our priorities are getting final approvals locally
while simultaneously advancing Imwelo toward production. We are on track to make 2024 a transformative year
for Lake Victoria Gold as we continue to grow, diversify and consolidate.”
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About Lake Victoria Gold (LVG):
Lake Victoria Gold is a rapidly growing gold exploration and development company listed on the TSX Ven ture
Exchange under the symbol LVG . Leveraging our uniqu e position and experience, the C ompany 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 (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 6 0% of the shares. Notably, the
Company is grateful for the validation 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 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: [email protected]
For more information please contact:
Simon Benstead Marc Cernovitch
Executive Chairman & CFO CEO & Director
Phone:+ 1 604-685-9316 Phone: +1 647-203-7868
Email: [email protected] 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 sec urities
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 expe cted
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"
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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
estimates; 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 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 nationalization 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 ot her inputs necessary for mining operations; shortages or cost increases 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 we ather
conditions; litigation risk; competition with other mining companies; community 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 infor mation
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.