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LVG: Secures up to ~US$25M Gold Loan

What you need to know:
• LVG announced it secured a gold loan facility of up to ~US$25M, equivalent to 6,000oz of gold.
• The facility will allow for accelerated Imwelo development and bridge the gap to full project financing.
• LVG also announced a fully committed $3.0M non-brokered convertible debenture financing, which will help advance both Imwelo and Tembo.
• On March 25th, LVG announced it is in advanced negotiations toward a binding agreement with Nyati Resources to toll mill ore from Tembo.

This morning, Lake Victoria Gold (LVG:TSXV, LVGLF:OTCQB) announced that it has agreed to terms of a gold loan facility of up to ~US$25M with Monetary Metals & Co., along with a fully committed $3.0M non-brokered convertible debenture financing. These two financings allow the Company to accelerate key programs at Imwelo and advance initiatives across both the Imwelo and Tembo projects. We are pleased with these updates as this is one of the last key steps for LVG to move Imwelo towards full construction and a defined path to production. Additionally, on March 25th, LVG announced it is advancing negotiations towards a binding agreement with Nyati Resources to support toll milling ore from the Tembo property at Nyati’s neighbouring mill. We are maintaining our BUY rating and target price of $0.50/share on Lake Victoria Gold.

The Monetary Metals gold loan is comprised of up to 6,000oz of gold (~US$25M), a discount to spot but notably higher than what would have been agreed upon if this took place last year (a large benefit to the timeline delay). A more detailed breakdown of the gold loan can be found on page 2. This loan is aimed at bridging near-term capital requirements to continue advancing the project with long-term project financing.

LVG Initiates Government Participation Process at Tembo
On March 25th, LVG announced an update on its Tembo Project, highlighting two parallel workstreams advancing the project toward near-term production. Tanzania's Mining Commission has formally initiated the process to incorporate the government's statutory 16% non-dilutable free carried interest in the Tembo mining licences, a standard and customary step under the country's mining framework. Simultaneously, LVG is in advanced negotiations toward a binding agreement with Nyati Resources to support toll milling and potential early-stage production, leveraging existing regional processing infrastructure to minimize capital requirements and accelerate timelines.