Lake Victoria Gold Ltd. (TSX-V: LVG; FRA: E1K) intends to fully fund the approximately US$12 million of capital expenditures required to bring the Imwelo mine in Tanzania into production by delivering 7,000 ounces of physical gold from future gold production. As the company announced today, a non-binding term sheet for a prepaid forward agreement (the “PPF”) was signed with Monetary Metals & Co. on November 30, 2024. The non-dilutive financing is structured to secure the essential resources for the commissioning and development of the mine and to align repayment with cash flow and gold production plans.

Lake Victoria Gold is certainly hitting a nerve with gold investors with the idea of gold-based financing for its Imwelo project. One wonders why many more prospective gold producers do not take advantage of this option. This may well be because the capital requirements for a new gold project are usually much higher. This is precisely where the advantage of the Imwelo project lies. The expected capital cost of around $12 million is comparatively manageable and production is expected to be only about a year away. These are precisely the reasons why the project is suitable for the proposed gold forward loan. The decisive milestone that probably made the agreement with Monetary Metals possible at all was certainly the recent transfer of the Imwelo mining license by the Tanzanian government.

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Lake Victoria Gold: Forward sale of 7,000 oz of gold to fully secure financing of Imwelo mine

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