Lake Victoria Gold Raises C$3.83M Debentures, Advances US$25M Loan and 39% Drilling
Lake Victoria Gold raises C$3.83M in second tranche of up to C$5M convertible debenture financing and advances US$25M gold loan for its permitted Imwelo project in Tanzania. Sterilization drilling has completed 8 of 21 boreholes (39%) to confirm infrastructure placement ahead of late-2026 construction and first gold in 2027.
1. Debenture Financing
Lake Victoria Gold closed the second tranche of its non-brokered private placement, raising C$3,834,200 toward a potential C$5 million total. Each unsecured convertible debenture bears 5% annual interest, matures in 36 months and is convertible at C$0.30 per share, with 36-month warrants exercisable at C$0.40.
2. Gold Loan Facility
The company is advancing a binding term sheet for a US$25 million gold loan facility (approximately 6,000 ounces), structured for project-level repayment in gold ounces. This non-dilutive funding aligns with Imwelo’s future production and complements the debenture financing in its broader capital strategy.
3. Sterilization Drilling and Timeline
Sterilization drilling began on May 12 with 8 of 21 planned boreholes (411 of 1,050 metres, or 39%) completed to date. Data from these boreholes will confirm ground conditions for plant and infrastructure placement, supporting detailed engineering and final pit design ahead of a late-2026 construction decision.
4. Imwelo Project Overview
The fully permitted Imwelo Gold Project is located 12 km west of a major operating mine in northern Tanzania and underwent a 2021 JORC-compliant pre-feasibility study. Metallurgical testwork has demonstrated gold recoveries up to 97% using a conventional gravity plus carbon-in-leach flowsheet, underpinning near-term development plans.