Fully Permitted Tanzanian Gold Project Clears Path to Construction as Financing, EPCM Fall in Place (LVGLF)

Rhea-AI Summary

Lake Victoria Gold (OTCQB: LVGLF) reports that its fully permitted Imwelo gold project in Tanzania is advancing toward construction after securing key technical and financing milestones. Imwelo holds Mining Licence ML 538/2015 and a 23‑hole, 1,136‑metre sterilization drilling program completed in June confirmed plant and camp sites are free of mineralization.

On June 29, 2026, the Tanzania Mining Commission approved a Tanzanian‑led EPCM structure with City Engineering Company as primary contractor and Sutton Consulting International providing technical support; a senior project manager mobilized to site on July 8, 2026. On April 1, 2026, the company entered a binding term sheet for a gold loan of up to 6,000 ounces (about US$25 million) from Monetary Metals, repayable in gold, and on July 2, 2026 closed the final tranche of a convertible debenture financing, bringing that raise to $4,165,200. Construction start is targeted for the current quarter. Lake Victoria Gold cautions that Imwelo lacks a current NI 43‑101 feasibility study and any production decision carries increased risk of economic or technical failure.

Positive

• Gold loan term sheet up to 6,000 oz (~US$25m) signed April 1, 2026
• Convertible debentures raise completed at $4,165,200 as of July 2, 2026
• EPCM structure approved June 29, 2026 with Tanzanian‑led contractors in place
• Senior project manager mobilized July 8, 2026 supporting near‑term construction start
• Imwelo fully permitted with Mining Licence ML 538/2015 and cleared plant sites

Negative

• No current NI 43‑101 feasibility study, increasing risk of economic or technical failure
• Gold loan repayable in ounces may expose the company to future production and price obligations

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Sept. 01, 2026 (GLOBE NEWSWIRE) --

Disseminated on behalf of Lake Victoria Gold

As gold prices held near record levels through the first half of 2026, investor attention has increasingly turned to a key question in the mining sector: which developers are closest to transitioning from permitted deposits to producing mines. Lake Victoria Gold (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K) has cleared a sequence of milestones on its Imwelo project in Tanzania that position the company at that threshold. 

Read more https://wallstreetpr.com/from-developer-to-producer-minings-biggest-valuation-shift/

The Imwelo project holds Mining Licence ML 538/2015 and is fully permitted. A 23-hole, 1,136-metre sterilization drilling program completed in June confirmed that the plant and accommodation footprints are clear of mineralization. On June 29, 2026, the Tanzania Mining Commission approved a Tanzanian-led EPCM (Engineering, Procurement, and Construction Management) structure for the project, with City Engineering Company Ltd. serving as primary contractor and Sutton Consulting International providing international technical support; Senior Project Manager Charl Coetzee mobilized to site on July 8, 2026. On the financing side, the company entered into a binding term sheet on April 1, 2026 for a gold loan of up to 6,000 ounces, approximately US$25 million from Monetary Metals, to be repaid in gold ounces rather than cash, and closed the final tranche of a convertible debenture financing on July 2, 2026, bringing that raise to $4,165,200. Construction start is targeted for the current quarter.

Markets have historically applied deep discounts to development-stage mining companies to reflect the execution risks associated with permitting, financing, construction, and commissioning. As those risks are retired, companies have often seen valuations shift from a developer's discount toward a producer's multiple. G Mining Ventures offers a recent example, having built the Tocantinzinho mine in Brazil on time and on budget, poured first gold in 2024, and produced 171,871 ounces generating approximately $580 million in revenue in its first full year of commercial production in 2025. Lundin Gold acquired the Fruta del Norte deposit in Ecuador for $240 million in 2014, reached commercial production in 2020, produced 498,315 ounces in 2025, and now carries a market value in the C$20 billion range. Montage Gold is undergoing the same transition, with its fully funded, $825 million Koné project in Côte d'Ivoire advancing ahead of schedule and first gold now targeted for the fourth quarter of 2026. TRX Gold is demonstrating the same trajectory within Tanzania itself: its Buckreef mine, located in the same Geita greenstone belt as Imwelo, produced 7,426 ounces last quarter at a record average realized price of $4,703 per ounce. Barrick holds an equity position in Lake Victoria Gold, Tanzania's Taifa Group is contracted for civil works and contract mining, and management, directors, and strategic partners collectively hold more than 60% of shares outstanding.

Imwelo has been the subject of JORC-code Preliminary Economic Assessment and pre-feasibility work; however, these studies are not current under NI 43-101, and the company has not completed a feasibility study establishing mineral reserves under CIM Definition Standards. Any decision to commence production is not based on a feasibility study of mineral reserves and carries an increased risk of economic or technical failure.

Read more https://wallstreetpr.com/from-developer-to-producer-minings-biggest-valuation-shift/

About Lake Victoria Gold

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 highly prolific and prospective Lake Victoria Goldfield in Tanzania. The Company has a 100% interest in the Tembo project which has over fifty thousand meters of drilling and is located adjacent to Barrick's Bulyanhulu Mine. The Company also holds a 100% interest in the Imwelo Project which is a fully permitted gold project west of AngloGold Ashanti's Geita Gold Mine. With historical resource estimates and a JORC Compliant 2021 pre-feasibility study, the project is fully permitted for mine construction and production, positioning it as a near-term development opportunity. 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 validation that comes with the support and equity investment from Barrick and strategic partnership with Taifa Group. 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 conduct 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.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws, including statements regarding the timing of construction, financing, and project development. Such statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on forward-looking statements.

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Sources: https://www.newsfilecorp.com/release/303579/Lake-Victoria-Gold-Formalizes-TanzanianLed-EPCM-Team-Advancing-the-Fully-Permitted-Imwelo-Gold-Project-Toward-Construction 
https://www.newsfilecorp.com/release/304339/Lake-Victoria-Gold-Mobilizes-Senior-Project-Manager-to-Imwelo-as-Construction-Readiness-Advances 

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FAQ

What recent milestones has Lake Victoria Gold (LVGLF) achieved at the Imwelo gold project in Tanzania?

Lake Victoria Gold has secured full permitting, EPCM approval, sterilization drilling completion, and key financing steps for Imwelo. According to Lake Victoria Gold, the Tanzania Mining Commission approved a Tanzanian‑led EPCM on June 29, 2026, and a senior project manager mobilized on July 8, 2026.

How is Lake Victoria Gold (LVGLF) financing construction of the Imwelo gold project?

Imwelo financing combines a gold loan term sheet and convertible debentures. According to Lake Victoria Gold, it signed a binding term sheet for up to 6,000 ounces (about US$25 million) from Monetary Metals and completed a $4,165,200 convertible debenture raise by July 2, 2026.

When is construction expected to start at Lake Victoria Gold’s Imwelo project (LVGLF)?

Construction at the Imwelo gold project is targeted to start in the current quarter. According to Lake Victoria Gold, EPCM approval on June 29, 2026 and site mobilization on July 8, 2026 have advanced construction readiness following completion of sterilization drilling in June.

Is the Imwelo gold project of Lake Victoria Gold (LVGLF) fully permitted in Tanzania?

Yes, the Imwelo gold project is fully permitted and holds Mining Licence ML 538/2015. According to Lake Victoria Gold, the project is permitted for mine construction and production, with sterilization drilling confirming clear plant and accommodation footprints ahead of targeted construction.

What are the main risks for investors in Lake Victoria Gold’s Imwelo project (LVGLF)?

The main disclosed risk is proceeding without a current NI 43‑101 feasibility study. According to Lake Victoria Gold, production decisions are not based on mineral reserve feasibility work and therefore carry increased risk of economic or technical failure at Imwelo.

Who are the key partners on Lake Victoria Gold’s Imwelo project (LVGLF)?

Key partners include City Engineering Company as EPCM lead and Sutton Consulting International for technical support. According to Lake Victoria Gold, Tanzania’s Taifa Group, through Taifa Mining or nominees, will handle contract mining and civil works, and Barrick holds an equity position in the company.

What does the gold loan from Monetary Metals mean for Lake Victoria Gold (LVGLF) shareholders?

The gold loan provides non‑equity financing of up to 6,000 ounces, reducing immediate share dilution. According to Lake Victoria Gold, the loan is repayable in gold ounces, aligning obligations with future production but exposing the company to delivery and price risks.