FREE

LVG: Making Progress on Imwelo

What you need to know:
• LVG has received the tax assessment from the Tanzanian Revenue Authority, one of the final steps from the acquisition of the Imwelo Mining License.
• Once the Mining License is officially transferred, it will trigger the second tranche of investment from the TAIFA group.
• Barrick Gold continues to explore the area surrounding the Tembo licenses, exciting us as LVG will share in Barrick’s success.
• We continue to value LVG at $0.45/share representing 137% upside.

This morning, Lake Victoria Gold (LVG:TSXV) announced that it received the tax assessment from the Tanzanian Revenue Authority (TRA) on the taxes to be paid on the acquisition of the Imwelo Mining License. LVG reported that the taxes owed from the assessment are within the budgeted range. Payment is expected to be made shortly, at which point the TRA will deliver a tax clearance certificate. This certificate, along with the previously received approval from the Fair Competition Commission (announced March 12th), is what is required for the Tanzanian Mining Commission to transfer the title of the Imwelo Mining License to LVG.

Though this took longer than expected, this announcement is a major milestone for the acquisition of the Imwelo Project and brings LVG to the final step in closing. We note that the finalized transfer of the mining license triggers the second tranche of investment from the TAIFA group. Furthermore, and mentioned in our previous note, the Company continues to advance negotiations with several other debt and equity groups to fully fund the development of Imwelo and expects to make such an announcement in conjunction with the completion of the acquisition. We are maintaining our BUY rating and $0.45/share target price on Lake Victoria Gold Ltd.