(LVCA:OTCBB) Lake Victoria Mining Company, Inc., has commenced forward gold sales through “Buy Gold Direct”, its web based offering of gold bullion bars. The Company, using Forward Gold Purchase Agreements intends to sell a portion of its planned monthly gold production in advance as a means to finance the capital costs of establishing their first medium size gold mine at the Kunanga Village area of the Kinyambwiga Gold Project, Tanzania.
The Company will begin immediately to enter Forward Gold Purchase Agreements with Accredited Investors worldwide to sell, in advance monthly portions of their planned gold production. The Company benefits by using a small portion of its existing asset to finance the project’s development, without further dilution of their share structure. The Company will only sell a small portion to satisfy its capital needs and then it will suspend any further forward gold sales. The appeal for the gold buyer or gold investor is their ability to purchase gold bullion directly from the producer at a considerable discount to the current gold spot price and gold future’s price in return for accepting a future delivery date from the Company.
President and CEO, David Kalenuik states: “Companies today must get creative and have tenacity to continue to fulfill their objectives and shareholder expectations. We believe that our team has been extremely creative in developing an alternative solution to funding our current capital requirements. We are taking a lesson from the big gold producers and institutions that have been forward gold selling for years. By using online sales, we are making it simple and easy for the accredited investor to play in the same game and receive the benefits. We are also proud of announcing the “Golden Rule”, our social commitment to the Kunanga Village, that we have incorporated from “day one” into our Forward Gold sales.”