Why Lenders Are Lining Up Behind Near-Production Gold

Executive Summary of Recent Activity

• Financing Close: Lake Victoria Gold secured a binding term sheet for a gold loan facility of up to US$25 million from Monetary Metals and a fully committed $3.0 million convertible debenture private placement.
• Project Progress: The company reported high-grade drill intercepts at Imwelo (e.g., 11.88 g/t Au over 1.33 m) and confirmed ~97% gold recovery rates using conventional processing methods.
• Regulatory & Partnership: Tanzanian government began incorporating the statutory 16% free-carried interest in Tembo licences, and a toll-milling agreement with Nyati Resources is pending to enable early cash flow.

Liquidity and Solvency

• The $28 million combined financing package fundamentally alters the company's liquidity profile compared to the ~$3.9 million cash balance reported in September 2025.
• This capital injection removes immediate solvency risk associated with development costs, allowing the company to fund construction without further equity dilution for the gold loan portion.
• The convertible debenture provides certainty of funding but introduces future share count expansion if converted at $0.31 (current trading price).

Corporate Structure

• Lake Victoria Gold Ltd. is a Canadian junior mining company focused on gold projects in Tanzania.
• Imwelo Project: 100% owned (subject to 16% government free carry); fully permitted for construction; located ~12 km from AngloGold Ashanti’s Geita Mine.
• Tembo Project: Optioned/owned adjacent licences with high-grade surface sampling potential; strategic focus on near-term small-scale production via toll milling.