Lake Victoria Gold (TSX-V:LVG; FRA: E1K) has now successfully completed the very last formal hurdle on the way to the transfer of its Imwelo mining license. As the company announced, the Tanzanian Tax Authority (TRA) issued the tax clearance certificate for the acquisition of the license this week. In addition to the vote by the Fair Competition Commission and proof of paid acquisition taxes, the company now has all the documents it needs to obtain the actual transfer of the license. The transfer of the Imwelo license is expected within the next 30 days.
With the acquisition of the Imwelo mining license now imminent, LVG will move forward with its development plans for the project. Following the transfer of ownership and final approval from the TSX Venture Exchange, the Company intends to proceed with site preparation, infrastructure development and initial mining activities at Imwelo. In addition, the Company continues to advance negotiations with several other debt and equity partners to secure full funding for the development of the Imwelo Project and expects to make further announcements in this regard in the near future.
Marc Cernovitch, Chief Executive Officer and Director, commented: “We are very pleased to have received the tax clearance certificate from the TRA which will allow us to submit our final applications to the Mining Commission and finalize the acquisition of the Imwelo Project. This is a critical step forward in our strategy to grow and consolidate our assets in the Lake Victoria Goldfield. The preparation of our submission to the Mining Commission is being finalized and should be completed in the coming days.”
Simon Benstead, Executive Chairman and Chief Financial Officer of the Company, commented: “Receiving the tax clearance certificate is a critical step for LVG. It allows us to finalize the acquisition of Imwelo and move forward with our development plans. We appreciate the unwavering support and patience of our shareholders, partners and stakeholders as we work towards our common goals.”
Bottom line: Lake Victoria shareholders should soon know the manual for transferring mining licenses in Tanzania by heart. Yes, it is true that the procedure, already familiar from the transfer of the Tembo licenses to Barrick Gold, has again taken an agonizingly long time. But now a new era is finally beginning for Lake Victoria Gold. The feeling of powerlessness that necessarily comes with bureaucratic processes has come to an end. From now on, the company can once again determine the pace of development itself. The management has had more time than it would have liked to prepare for this moment. Lake Victoria will soon reveal how the Imwelo project will be fully financed.
