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Lake Victoria Gold Ltd. formalized the appointment of a local engineering firm to lead development at its Imwelo gold project in northwestern Tanzania, satisfying strict domestic regulatory mandates while moving closer to construction.
The Vancouver-based miner, through its wholly owned subsidiary Tembo Gold (T) Limited, received approval from the Tanzania Mining Commission on June 29 to tap City Engineering Company Ltd. (CECL) as its primary Engineering, Procurement, and Construction Management (EPCM) contractor. Sutton Consulting International Limited will serve as the international technical-support partner.
The corporate structure aligns with Tanzania’s Mining (Local Content) Regulations, 2018, which require foreign resource developers to prioritize domestic ownership, employment, and local supply chains. Under the framework, 100% Tanzanian-owned CECL will act as the commercial lead and hold the primary contract, while Sutton will provide specialized engineering review and transfer skills to local professionals.
“This is a key milestone in preparing Imwelo for construction,” Marc Cernovitch, President and Chief Executive Officer of Lake Victoria Gold, said in a statement. “Tanzania has a clear regulatory framework for local content and mining project development, and we believe long-term success in the country requires working constructively with the Mining Commission, respecting that framework, and ensuring Tanzanian companies and professionals play a meaningful role.”
The integration of CECL and Sutton consolidates engineering workstreams currently underway at Imwelo, including tailings and water infrastructure design, geotechnical studies, and process plant optimization.
The project development continues alongside Lake Victoria’s broader financing efforts. The company is currently progressing a previously announced gold loan facility term sheet of up to approximately US$25 million with Monetary Metals & Co., which remains subject to regulatory approvals and standard closing conditions.
Simultaneously, Lake Victoria announced it has closed the third and final tranche of a non-brokered private placement of unsecured convertible debentures. The final tranche raised $331,000, bringing total aggregate proceeds across all three tranches to $4,165,200. The 36-month debentures bear interest at 5% per annum and are convertible into common shares at $0.30 per share. Capital from the placement is earmarked for ongoing engineering, mine planning, and active field programs at Imwelo.
The company cautioned that while Imwelo has historical pre-feasibility work under foreign codes, it has not yet completed a current feasibility study establishing mineral reserves under Canadian National Instrument 43-101 standards. Any decision to commence production without such a study involves a higher risk of economic and technical failure, the company said.
Lake Victoria Gold, which counts major miner Barrick Gold Corp. and domestic conglomerate Taifa Group among its strategic partners and equity investors, is focused on consolidating assets within the Lake Victoria Goldfield. Taifa Mining, a subsidiary of Taifa Group and Tanzania’s largest mining contractor, is already slated to conduct all contract mining and civil works for the Imwelo site.
