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LVG: Mining License Renewal - Long Runway Ahead

What you need to know:
• LVG announced the Imwelo Mining License has conditionally been approved for a 10-year renewal, providing runway for LVG to execute.
• On July 18th, the Company announced the receipt of the Tax Clearance Certificate, the final requirement for transferring the Imwelo Mining Licence to LVG.
• Once the Mining License is officially transferred, it will trigger the second tranche of investment from the TAIFA group.
• We continue to value LVG at $0.45/share representing 137% upside.

This morning, Lake Victoria Gold (LVG:TSXV) announced that Tanzoz Minerals Ltd.’s (TML) application to the Tanzanian Mining Commission for a 10-year renewal of the Imwelo Mining License has received conditional approval. To finalize the renewal, TML must submit updated Mining, Environmental, and Closure Plans, begin development within 90 days, and pay the renewal fee within 30 days. These documents are being prepared and are expected to be submitted, and the fee paid within the allocated period. This comes as highly positive news as it provides substantial runway (10+ years) for LVG to develop and operate its Imwelo Project. It also puts a clock on project development which preliminary work has already commenced. As a reminder, the Mining License has not yet been transferred from TML, but no further approvals are required, and it is mainly just an administrative process from this point forward.

On July 18th, 2024, LVG announced the receipt of the Tax Clearance Certificate from the Tanzanian Revenue Authority for the acquisition of the Imwelo Mining License. This milestone marked the final requirement for transferring the Imwelo License to LVG by the Tanzanian Mining Commission. We note that the finalized transfer of the mining license triggers the second tranche of investment from the TAIFA group.

These two announcements continue to de-risk the Imwelo Project and we are excited for LVG to begin the construction and progress towards gold production. 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.