Lake Victoria Gold Ltd. Shows Progress at Imwelo and Tembo Properties
Lake Victoria Gold Ltd. recently provided an update on its Imwelo and Tembo properties, demonstrating the ongoing progress of both projects. Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research flash published on May 8, 2024, maintained their Buy rating on the company with a target price of CA$0.45 per share, representing a potential upside of 150%.
Imwelo Project Advancements
The Imwelo Project is moving forward with the final steps before the official transfer of the mining license currently underway. Additionally, preparatory work at the site is progressing as planned. Barrick Gold Corp. continues to invest significant capital into the surrounding Tembo licenses, which bodes well for Lake Victoria Gold as they are expected to benefit from Barrick’s exploration success.
Lake Victoria Gold has received approval from the Tanzanian Fair Competition Commission for the acquisition of ML538/2015 from Tanzoz Minerals Limited at the Imwelo property. The Tanzania Revenue Authority is evaluating the capital gains tax due on the transaction, with a decision expected soon. Once this tax assessment and payment are completed, the official transfer of the mining license will trigger the second tranche of investment from TAIFA Group.
The company is also in advanced discussions with various debt and equity groups to secure funding for the construction and development of Imwelo. Significant progress has been made in areas such as preparatory earthworks, infrastructure development, and securing the project’s water supply. Construction is expected to be completed approximately one year after the acquisition and financing are finalized.
Tembo Property Strategy
Lake Victoria Gold has chosen not to conduct major exploration activities at the Tembo property for two main reasons. Firstly, the focus is on conserving capital for the development of Imwelo. Secondly, Barrick Gold’s exploration efforts in the surrounding areas of Tembo are providing valuable exploration data at no cost to Lake Victoria Gold.
Potential Cash Payments and Key Catalysts
Through its partnership with Barrick, Lake Victoria Gold could receive cash payments of up to US$45M, contingent on exploration success. The analysts highlighted key catalysts for the company, including the maiden resource for the Tembo Gold Project expected in Q1 2024, ongoing M&A and 2024 drill results, and crucial development milestones for the Imwelo project throughout the year.
Insightful Analysis and Forecast
In addition to the provided information, it is important to note that Lake Victoria Gold’s strategic partnerships, the potential for profitability with Imwelo production anticipated in H1 2025, exploration upside across all projects, and management’s substantial insider ownership are key factors contributing to the positive outlook on the company. These elements position Lake Victoria Gold for potential growth and success in the near future.
