Business
Lake Victoria Gold Reaches Agreement in Principle with Government of Tanzania on Free Carried Interest Framework
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2025) - Lake Victoria Gold Ltd.
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About this update from Lake Victoria Gold Ltd
[{"type":"text","content":"\nLake Victoria Gold Reaches Agreement in Principle with Government of Tanzania on Free Carried Interest FrameworkVancouver, British Columbia--(Newsfile Corp. - September 18, 2025) - Lake Victoria Gold Ltd. (TSXV: LVG) (OTCQB: LVGLF) (FSE: E1K) (\"Lake Victoria Gold\" or the \"Company\") is pleased to announce that its Tanzanian subsidiary, Tembo Gold (T) Limited (\"Tembo\"), has reached an agreement in principle with the Government of Tanzania on the major issues surrounding the Government's statutory free carried interest in the Imwelo Gold Project.The statutory negotiation meeting was held on September 10, 2025, in Arusha, Tanzania, and attended by Marc Cernovitch, President & CEO of Lake Victoria Gold, accompanied by legal and financial advisors from Velma Law & Crowe, alongside the Government Negotiation Team from the Ministry of Minerals. The meeting was productive and resulted in agreement in principle on the central issues, including the Government's free carried interest in mining projects as required by Tanzanian law.Tanzania's Mining Participation FrameworkUnder Tanzania's Mining Act (Cap. 123) and the Mining (State Participation) Regulations, 2022, the Government is entitled to a minimum 16% non-dilutable free carried interest in all gold mining projects. This ensures that the people of Tanzania participate directly in the ownership of their natural resources.In addition to equity ownership, the fiscal regime includes:A 6% royalty on gold production, plus a 1% export levy;A 4% reduced royalty rate when minerals are refined within Tanzania; andA requirement that 20% of production be refined and sold in-country, with the Bank of Tanzania purchasing that portion at market prices.These measures are designed to maximize local beneficiation, strengthen national gold reserves, and ensure that Tanzanians share equitably in the benefits of mining.Formation of a Joint Venture CompanyAs part of the process, Lake Victoria Gold and the Government will establish a new joint venture company (\"JVCo\") to hold and operate the Imwelo Mining Licence. The JVCo structure, governed by a Framework Agreement, Shareholders' Agreement and Memorandum and Articles, provides a transparent and durable foundation for collaboration between the Company and the Government.Marc Cernovitch, President & CEO of Lake Victoria Gold, ...