Lake Victoria Mining Company, Inc. (OTCBB:LVCA) (the “Company”), on behalf of its shareholders, wishes to update the status of its eight gold projects and the company’s ongoing gold exploration activities in Tanzania, East Africa in the context of its recent press releases. The following highlights are designed to give our shareholders improved understanding that the Company is continuing with its solid strategic approach in the development of its eight gold projects with the goal of discovering a commercially feasible gold resource in Tanzania, East Africa.
Closure of Joint Venture with Otterburn Ventures
Many were surprised at the recent termination announcement of the four joint venture agreements. Although the Company was neither expecting nor desiring this outcome, it will realize cash payments of approximately USD$1,200,000 from the option payments and exploration commitments, which includes the complete payment for the 2
phase of drilling at the Singida gold project. Pursuant to share purchase agreements dated July 22, 2011 the Company has agreed to sell the 2,200,000 Otterburn shares to private purchasers, unrelated to the Company, at a price of $0.10 per share, recognizing a payment to the Company of an additional $220,000 by September 2011. The Company also retains one hundred percent (100%) of its rights to all four of the gold exploration projects: Singida, Geita, Kalemela and North Mara, that made up the four option agreements with Otterburn Ventures.
Singida Gold Project Going Forward
Based upon recently reported drill results from the Singida gold project (see press release dated July 21, 2011
) the Company believes that the nature and extent of the mineralization revealed thus far may lend itself towards a small-scale commercial mining operation, joint venture or sale of the asset. In keeping with its focus of building shareholder value, the Company intends to continue to advance the Singida gold project. An independent technical team is compiling and reviewing the results from both drill programs on this project and a preliminary economic assessment study is planned to determine the feasibility of a small-scale commercial gold mine at Singida.
Uyowa Gold Project Proceeding to Drill Targeting August 2011
Meanwhile, the end of the rainy season in northwestern Tanzania marks the recommencement of exploration at the company’s Uyowa gold project. In 2003, the Uyowa project was the site of encouraging exploration results by Ashanti Gold.