en.Wedoany.com Reported - Lake Victoria Gold Ltd. (TSX Venture Exchange: LVG, OTCQB: LVGLF, Frankfurt Stock Exchange: E1K) announced on July 2 that it has appointed an Engineering, Procurement, and Construction Management (EPCM) contractor for its wholly-owned Imwelo Gold Project in Tanzania.
The company's wholly-owned subsidiary, Tembo Gold Ltd., which holds the mining license (ML 538/2015) for the project, has completed the appointment in collaboration with Sutton Consulting International Ltd., which will serve as the international technical support partner.
This strategic appointment was approved by the Tanzania Mining Commission on June 29, in compliance with the country's 2018 Mining (Local Content) Regulations. The approval marks the final phase of engineering, procurement planning, and construction preparation for the Imwelo project, which will be advanced under a unified, Tanzania-led project delivery framework.
President and CEO Marc Cernovitch stated that this is a key milestone in preparing for Imwelo's construction. With the Mining Commission's approval and the formal establishment of the EPCM structure, the company is one step closer to building Tanzania's next new gold mine. He noted that Tanzania has a clear regulatory framework for local content and mining project development, and achieving long-term success in the country requires constructive cooperation with the Mining Commission, respect for this framework, and ensuring that Tanzanian businesses and professionals can play a meaningful role in project execution. CECL (City Engineering Company Ltd.) and Sutton provide the right platform to achieve this goal. CECL brings Tanzanian leadership, local engineering capabilities, and domestic execution capacity, while Sutton contributes specialized international technical support and African mine development experience. The combination provides a disciplined and compliant structure for advancing final engineering, procurement planning, and construction preparation.
Key aspects of the partnership include: CECL serving as the primary EPCM contractor and commercial lead, providing local project leadership, engineering capabilities, and domestic construction management support; Sutton acting as the international technical support partner, offering specialized engineering reviews, African mine development experience, and additional technical support for EPCM tasks.
The comprehensive EPCM scope will oversee and coordinate a range of critical activities, including final detailed engineering, procurement planning, infrastructure design, mine planning support, construction preparation, and overall project management. Significant progress is being made across various development workstreams, including tailings and water infrastructure design, geotechnical and hydrogeological studies, processing plant optimization, procurement support, and construction quality assurance.
Project advancement is proceeding in parallel with financing activities, including the previously announced gold loan term sheet with Monetary Metals & Co., which could provide up to approximately $25 million, subject to specific conditions and necessary regulatory approvals.
The EPCM model combines strong Tanzanian engineering and environmental capabilities with international technical expertise. CECL is a 100% Tanzanian-owned company, registered with the National Environment Management Council, the Engineers Registration Board, and the Ministry of Water in Tanzania, with local expertise in geotechnical investigations, environmental impact assessments, and water treatment design. Sutton is a multidisciplinary mining and engineering consultancy and a member of the Sutton Global Group, with extensive experience in African gold and multi-commodity projects, including expertise in processing plant design, tailings storage facility engineering, and mine planning.
The EPCM structure is designed to provide engineering services while enhancing local engineering capabilities, expanding opportunities for Tanzanian professionals and suppliers, and facilitating significant knowledge transfer. This approach aligns with Tanzania's Mining (Local Content) Regulations, which aim to ensure that mineral resources contribute to broad-based national development by prioritizing Tanzanian ownership and skills development.
Lake Victoria Gold views local content as a key aspect of responsible mine development in Tanzania, and its strategy is to support Tanzanian participation in project delivery while maintaining international technical standards through Sutton's specialized support.
It should be noted that while the Imwelo project has undergone a JORC-compliant Preliminary Economic Assessment (PEA) and Pre-Feasibility Study (PFS), these studies are not currently compliant with NI 43-101 standards. The company has not yet completed a feasibility study to determine mineral reserves demonstrating economic and technical viability. Any decision to commence production involves higher uncertainty and greater economic and technical failure risks, including variations in grade and recovery, geotechnical or metallurgical challenges, cost overruns, and regulatory risks.
On the financial front, Lake Victoria Gold successfully completed the third and final tranche of a non-brokered private placement of unsecured convertible debentures, raising gross proceeds of CAD 331,000, bringing total proceeds from all tranches to CAD 4,165,200. These debentures bear interest at 5% per annum, mature 36 months from the date of issuance, and are convertible into common shares at CAD 0.30 per share. The proceeds will be used for ongoing development activities at the Imwelo Gold Project, including engineering, mine planning, infrastructure preparation, and field programs. No finder's fees were paid in connection with this placement, which is subject to final approval from the TSX Venture Exchange.
Lake Victoria Gold recently achieved another key milestone in Imwelo's development by successfully completing a sterilization drilling program, confirming that the designated areas for the proposed processing plant and accommodation/camp are free of significant gold mineralization. This allows construction to proceed without the risk of wasting valuable mineral resources, significantly reducing project risk.
The sterilization drilling involved 23 holes, 12 beneath the proposed processing plant area and 11 beneath the proposed accommodation/camp area. The drilling results align with regional total magnetic intensity surveys, confirming that known mineralization trends are located south of the planned infrastructure. The drilling also identified a continuous 3 to 5-meter clay layer across the entire plant site, providing essential geotechnical data for foundation and civil engineering design.
Lake Victoria Gold also reported positive geotechnical results supporting the final pit design for Zone C. Key catalysts include ongoing progress and drilling results at the Tembo project in partnership with Barrick, and the expected start of construction at Imwelo in Q3 2026. A recent geotechnical review of Zone C provided critical inputs for pit slope design, confirming robust rock conditions favorable for potentially steeper slopes, subject to detailed design.
Atrium Research analyst Ben Pirie, in a June 23 update, stated that the company has significant exploration upside across its portfolio, with Imwelo offering potential for mine life extension and Tembo featuring multiple targets near Barrick's Bulyanhulu mine. He rated the stock a Buy with a target price of CAD 0.50 per share. Red Cloud's Alina Islam, in an April 2 report, commented on the agreement with Monetary Metals, calling it another important milestone for the company, providing Lake Victoria Gold with a credible and largely non-dilutive financing pathway. The gold loan is denominated and repayable in up to 6,000 ounces of gold, with a multi-year interest rate of 15% per annum, and is expected to close within 60-90 days, subject to due diligence and regulatory approvals.
