Aim-listed gold and nickel exploration and development company Katoro Gold has completed the disposal of the Imweru gold project to Lake Victoria Gold (LVG) for $1-million and a 1.5% net smelter royalty on all future gold production.
The transaction for Imweru, which is held by its 100% Tanzanian registered subsidiary, Reef Miners, has been approved by the Mining Commission in Tanzania with a Consent Certificate issued by the commission's executive secretary.
LVG is an unlisted public company, incorporated in Australia, operating multiple exploration licences, including its key project, the Imwelo gold project, adjacent to Imweru.
The transaction will result in two strategic gold assets combined, which increases the project footprint and in-situ gold resource, and will, the board of Katoro believes, enable a considerably faster route to gold production.
Imweru is located in the Lake Victoria Goldfields region of northern Tanzania, a proven mineral district that currently hosts both AngloGold Ashanti’s Geita gold mine and Barrick Gold's Bulyanhulu gold mine.
The current Joint Ore Reserves Committee-compliant mineral resource at Imweru consists of 11.6-million tonnes on 50% at a grade of 1.38 g/t for 515 110 oz of gold. Exploration work, to date, has only covered 50% of the project area.
Katoro executive chairperson Louis Coetzee says the completion of this disposal enables the management team at Katoro to focus financial and managerial resources on the highly significant Blyvoor gold tailings production project, in South Africa.
“The focus on Blyvoor is important, particularly recognising the progress being made and the extensive interest from project level financing partners.”