Lake Victoria receives approval of acquisition

Lake Victoria Gold Ltd. has received final approval from the Toronto Stock Exchange to acquire the Imwelo Gold Project in Tanzania.

Through the purchase of Imwelo, the seller, Tanzoz Mineral Ltd., becomes a new >10% shareholder of Lake Victoria Gold. Likewise, Rostam Aziz, one of Tanzania’s wealthiest entrepreneurs, will now hold more than 10% of Lake Victoria.

Imwelo’s underlying mining license, ML 538/2015, will irrevocably become the property of Lake Victoria Gold’s wholly-owned subsidiary, Tembo Gold Tanzania Ltd. Under the terms of the License Purchase Agreement, the vendor, Tanzoz Mineral Ltd., will receive a payment of CAN$5 500 000 in the form of 24 064 723 common shares in Lake Victoria Gold, at a deemed issue price of CAN$0.22 per share. In addition, a one-time payment of US$148 148 is due in cash. As a result of the acquisition, Seth Dickinson, the CEO of the seller, was appointed Chief Operating Officer and Director of the company.

The Lake Victoria shares issued to the seller are subject to a trust agreement under the conditions listed below:

• 1/3 of the shares will be released from the trust once commercial production has been achieved at the Imwelo project.
• 1/3 of the shares (1/2 of the remaining shares) will be released 6 months after commercial production has been achieved in the Imwelo project.
• 1/3 of the shares (all remaining shares) will be released 12 months after commercial production has been achieved in the Imwelo project.

At the same time as the acquisition was concluded, the company also concluded a private placement of 16 000 000 shares at a price of CAN$0.22 with an associated company of the Tanzanian Taifa Mining and Civils Limited. Taifa therefore now owns 10.86% of the company. Lake Victoria will receive proceeds of CAN$3 520 000 from the placement.

Simon Benstead, Executive Chairman & CFO, said:

“This milestone represents a defining moment for Lake Victoria Gold and its shareholders. The completion of the acquisition of the Imwelo Mining License and the solidification of our strategic partnership with Taifa Group reflects the unwavering commitment and persistence of our team and partners. We thank our shareholders for their patience and support, and remain focused on advancing the project to realise meaningful results and value for all stakeholders.”

Read the article online at: https://www.globalminingreview.com/mining/04032025/lake-victoria-receives-approval-of-acquisition/