With Billionaire Capital Flowing into Gold, Gold Mining Stocks May Be Next in Line for Revaluation - Seite 2

The LOI follows an earlier announcement that LVG was evaluating small-scale development scenarios at Tembo, including joint venture discussions with the operator of a CIP processing facility located within one of the company's four Mining Licences.

The company emphasizes that this initiative remains at an early stage and is not based on a current mineral resource estimate or Feasibility Study, and remains subject to significant technical and economic uncertainties.

"Tembo has always stood out as a project with the potential to deliver both near-term value and long-term discovery upside," said Simon Benstead, Chairman and CFO of Lake Victoria Gold. "Evaluating this small-scale development opportunity allows us to test the system, generate operational insights, and potentially self-fund ongoing exploration. We believe this approach aligns well with our disciplined strategy and our commitment to responsible, phased development in Tanzania."

Located adjacent to Barrick Gold's Bulyanhulu Mine, Tembo has seen over US$28 million in historical exploration, including 50,000 meters of drilling. High-grade targets like Ngula 1, Nyakagwe Village, and Nyakagwe East remain open along strike and at depth.

While Tembo is the long-range flagship, LVG's Imwelo Project is positioned to lead in near-term development. Acquired earlier this year, Imwelo is a fully permitted gold project west of AngloGold Ashanti's Geita Gold Mine. A 2021 pre-feasibility study and existing approvals support a potential near-term path to construction.

Financially, LVG continues to build flexibility. In late 2024, the company signed a non-binding gold prepay term sheet with Monetary Metals for up to 7,000 ounces—potentially providing over US$20 million in non-dilutive capital.

In February, LVG also completed the first tranche of a three-stage strategic investment agreement with Taifa Group, raising C$3.52 million at C$0.22 per share. Richard Reynolds, former CEO of Taifa Mining, has joined LVG's board as part of the partnership.

The company also retains exposure to exploration upside through its 2021 deal with Barrick, which includes up to US$45 million in contingent milestone payments. With early development optionality at Tembo, an advancing construction-stage project at Imwelo, and strong strategic partnerships, Lake Victoria Gold is emerging as a standout name in East Africa's junior gold sector.