Gold Developer Secures US$25M Financing for Tanzania Project

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Lake Victoria Gold Ltd. (LVG:TSX; LVGLF:OTCQB; E1K:FSE) announced that it has finalized the terms for a gold loan facility of up to 6,000 ounces of gold (approximately US$25 million) with Monetary Metals & Co., according to an April 1 release.

This agreement is complemented by a fully committed CA$3 million non-brokered convertible debenture financing, the release noted.

Lake Victoria Gold said the gold loan facility is a crucial advancement in securing non-dilutive, project-level financing for the development of the company’s Imwelo Gold Project in Tanzania. Concurrently, the convertible debenture financing will provide immediate funds to expedite ongoing work programs.

This announcement follows a previous declaration on December 3, 2024, about a gold financing initiative with Monetary Metals, and the current binding term sheet marks a significant progression towards finalizing a definitive financing solution for the Imwelo project. While the term sheet solidifies certain essential commercial terms, it is still subject to the completion of due diligence, definitive documentation, and standard regulatory approvals.

"This financing allows us to immediately accelerate work programs on the ground at Imwelo and advance key initiatives across both Imwelo and Tembo without delay," Chief Executive Officer and Director Marc Cernovitch said. "With capital now in place, our focus is on execution — progressing engineering, advancing site activities, and moving Imwelo toward development. At the same time, the Monetary Metals facility provides a clear pathway to larger-scale project financing, supporting our objective of bringing Imwelo into production."

Executive Chairman and Chief Financial Officer Simon Benstead added, "This financing structure is designed to bridge near-term capital requirements with longer-term project funding. The combination of a gold-denominated facility with repayment in gold ounces and a fully committed convertible debenture provides funding certainty while minimizing dilution. We are focused on building a disciplined capital structure to support development and advance Imwelo toward construction."

Details of the Agreements

Lake Victoria Gold Ltd. has structured a significant financial arrangement with Monetary Metals, setting up a gold loan facility for up to 6,000 ounces of gold, approximately valued at US$25 million, the release said. This facility is uniquely denominated in gold ounces, aligning closely with the future gold production from the Imwelo Gold Project. It features a 15% annual interest rate and is structured over multiple years with a planned amortization profile, designed as a non-dilutive financing solution for the project. The proceeds are earmarked for the development of the Imwelo Gold Project.

Additionally, the agreement includes an equity participation component, offering 2,500,000 warrants exercisable over three years at a price determined by the 30-day VWAP of the Company’s shares at closing, subject to regulatory approvals by the TSX Venture Exchange. The company aims to close this agreement within the next 60-90 days, pending due diligence, definitive agreements, and regulatory approvals.

"With the Imwelo gold project, we are deploying gold as productive capital," Money Metals CEO Keith Weiner said. "We believe that structuring financing in gold ounces aligns the interests of both parties and supports efficient project development. We are pleased to be working with Lake Victoria Gold to advance the project through to production.”

In addition to the gold loan, the CA$3 million secured through a non-brokered private placement of unsecured convertible debentures will bear interest at 5% per annum, payable semi-annually, and are set for a 36-month term.

The proceeds from this placement will accelerate development at the Imwelo Gold Project and advance the Tembo Project, among other corporate purposes, the company said. Insiders may participate in this placement, deemed a related party transaction exempt from certain formal valuation and minority shareholder approval requirements. This placement is subject to a statutory hold period of four months and one day, and approval from the TSX Venture Exchange.

Monetary Metals, known for its innovative Gold Yield Marketplace™, offers gold-denominated financing, providing a yield on gold, paid in gold, to stakeholders in the precious metals sector. This approach allows investors to compound their gold holdings over time without incurring storage fees.

Analyst Says Steps Are Crucial for Co.

These financial arrangements are set to expedite critical developments at the Imwelo project and further initiatives at both the Imwelo and Tembo projects, according to an updated research note by Atrium Research Analyst Ben Pirie on April 1. These steps are crucial as LVG moves towards full construction and a clear trajectory to production at Imwelo, the analyst said.

"Additionally, on March 25, 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 neighboring mill," Pirie wrote. "We are maintaining our BUY rating and target price of CA$0.50/share on Lake Victoria Gold."

The announcements, coupled with the strategic developments on March 25, underscore LVG’s robust portfolio and its commitment to achieving near-term production, the analyst said. The financing methods chosen are designed to minimize shareholder dilution as the projects advance. The potential collaboration with Nyati offers a lower-risk production pathway with significant upside, which is currently undervalued by the market. The market has yet to fully recognize LVG’s potential to commence gold production from two assets in the near future, leveraging high gold prices.

Looking ahead, LVG is focused on transforming its current momentum into concrete progress. This includes finalizing the agreement with Nyati, completing the government participation framework, and advancing technical work to support mine planning and operational readiness. These steps are pivotal in de-risking the Tembo project within the Tanzanian regulatory context and shifting towards execution by leveraging existing infrastructure to reduce initial capital outlays and expedite project timelines.

On March 19, 2026, Alina Islam, a Mining Analyst at Red Cloud Securities, provided a detailed update on Lake Victoria Gold, focusing particularly on the recent metallurgical test results from the company's operations. Although Lake Victoria Gold does not currently have a formal rating or target price set by Red Cloud, Islam highlighted that these latest results represent a significant de-risking milestone for the project. Notably, this batch of tests included, for the first time, both transitional and fresh sulfide rock from deeper sections of the planned mining pit, complementing earlier tests that primarily focused on oxide materials.

Islam pointed out that the consistency of these new results with historical data from 2013, 2014, and 2017 boosts confidence in the predictability of recovery rates throughout the mining sequence and strongly supports the final plant design. The tests affirmed the effectiveness of the gravity plus carbon-in-leach (CIL) processing flowsheet, a method well-established in the Lake Victoria Goldfield and consistent with metallurgical profiles observed in other operational mines within the district. Additionally, Bond Work Index testing indicated a value of approximately 22.9 kWh/t, reflecting the relatively hard rock characteristic of the region's Archean greenstone deposits, yet manageable within conventional milling circuits.

The Imwelo project, located just 12 kilometers west of AngloGold Ashanti Ltd.'s Geita mine, is a fully permitted, near-term development initiative operating under a 10-year mining license with comprehensive permissions for construction and production. A historical Preliminary Feasibility Study (PFS) from 2021 projected a 10-year open-pit operation beginning with an initial production of 12,000 ounces of gold, scaling up to 24,000 ounces, at an estimated all-in sustaining cost of US$1,500 per ounce. Lake Victoria Gold is currently integrating these metallurgical insights into final mine planning, process plant optimization, and engineering studies for a PFS anticipated around 2027, as Islam noted. The company is also advancing funding strategies to cover the estimated US$15 million capital cost.

Looking ahead, Islam highlighted several potential catalysts that could positively impact the stock price, including an updated mineral resource estimate expected in 2026, a targeted pre-feasibility study around 2027, and ongoing exploration results from the company's Tembo project.

The Catalyst: Gold Starts Bouncing Back

Ines Ferré reported for Yahoo! Finance on March 31 that gold prices experienced a notable increase due to optimistic expectations for a quick resolution to the Middle East conflict. Despite this uptick, gold recorded its most challenging month in over a decade.

Gold futures surged by 3% as President Trump indicated that the conflict "won't last much longer," propelling bullion prices to exceed US$4,670 per troy ounce amid a general market rally. However, even with Tuesday's surge, gold futures concluded the month with their most significant drop since 2013. Similarly, spot gold prices rose during the session but were on track to mark their worst monthly performance since 2008.

Despite the steep monthly decline, which momentarily cast doubt on gold's status as a safe haven, Wall Street views this downturn as temporary. Otavio Costa, founder and CEO of Azuria Capital, expressed optimism about the market's direction, stating, "Bottoms are always a process, and I do believe we are in the middle of one," in a post on Tuesday.

According to Neils Christensen writing for Kitco News on March 31, the gold market is showing signs of stabilization with prices maintaining above US$4,500 an ounce, yet Mike McGlone, senior market analyst at Bloomberg Intelligence, cautions that the peak prices seen in January might be the highest for this generation.

In his April metals outlook, McGlone highlighted the challenges gold faces following its sharp rise earlier in the year. He noted, "At the end of February, the metal stretched to its highest-ever level versus the Bloomberg Commodity Spot Index and its greatest premium to its 60-month moving average since 1980."

He further explained that the significant rally in 2025, which was the most robust since 1979, seemed to anticipate the Iran war, drawing a parallel to the 1980 peak when gold reached about $850 an ounce, a high that persisted until 2008.

McGlone observed that gold is currently struggling as its speculative momentum has shifted its perception from a safe-haven asset to a risk asset, according to Christensen. He pointed out that gold’s 180-day volatility is now more than double that of the S&P 500 and is at its highest quarterly level since 2006. This volatility comes as gold is poised to record its worst monthly loss since the 1980s, with spot gold last trading at US$4,612.70 an ounce, down 12.5% for the month. McGlone also speculated that silver's surge to US$120 an ounce in January might mark a historic peak, noting that the price ratio of silver versus oil and copper reached historic highs in the first quarter.

Ownership and Share Structure¹

Approximately 28% is owned by management and insiders, institutions hold 15%, and strategic corporate investors (including Barrick Mining Corp. and the TAIFA Group) own 23%. The remainder is retail.

Top shareholders include AIMS Asset Management with 8.79%, Rostam Aziz with 8.19%, Simon Charles Benstead with 7.56%, Concept Capital Management Ltd. with 5.83%, and Walter David Scott with 3.08%.

The company's market cap is CA$60.58 million. It has 195.43 million shares outstanding, according to the company, and trades in a 52-week range of CA$0.16 to CA$0.35.