By: OrePulse

Lake Victoria Gold Ltd. has signed a non-binding term sheet with HOB Energy FZCO for a private placement expected to raise roughly $27.2 million, the TSX Venture Exchange-listed gold developer said, with proceeds earmarked for advancing its fully permitted Imwelo Gold Project in Tanzania.

Under the proposed non-brokered placement, HOB Energy, an arm's-length investor, would subscribe for 90,733,960 common shares of Lake Victoria Gold at $0.30 per share, for gross proceeds of $27,220,188, the company said. Because the placement is non-brokered, it would not involve a placement agent.

A concurrent Shareholder Participation Offering would allow certain existing significant shareholders to subscribe for up to an additional 16,666,666 shares at the same $0.30 price, raising as much as $5 million more and letting those shareholders maintain their proportional ownership in the company, according to Lake Victoria Gold.

Together, the two offerings could bring in roughly $32.2 million, which the company said it plans to direct toward advancing the Imwelo Gold Project toward production, expanding drilling and exploration at its Tembo Gold Project, and general corporate and working capital purposes.

Completion of both offerings is subject to a number of conditions, the company said, including approval from disinterested shareholders, regulatory approvals, approval from the TSX Venture Exchange, satisfactory completion of mutual due diligence, and the absence of any material adverse change affecting either party. Lake Victoria Gold cautioned there is no assurance these conditions will be met. The company is targeting completion on or before November 30, 2026.

Any securities issued under the offerings would be subject to a hold period of four months and one day under Canadian securities law.

Marc Cernovitch, President and Chief Executive Officer of Lake Victoria Gold, said in a statement that the company was "delighted to welcome Ozcan Halaç and HOB as a long-term strategic partner." He said the "Halaç family's multi-generational experience across the gold value chain brings far more than capital" to Lake Victoria Gold.

Cernovitch also pointed to the company's exploration progress, saying "the recent maiden Mineral Resource Estimate at Tembo provides the foundation for a much larger exploration effort."

Simon Benstead, Lake Victoria Gold's Executive Chairman and Chief Financial Officer, said "the scale of this proposed investment would meaningfully strengthen" the company's ability to execute its strategy. He characterized the deal as "not simply a financing," saying it "pairs substantial development and exploration capital" with HOB's "gold-sector experience and its technical and commercial capabilities."

Imwelo is Lake Victoria Gold's fully permitted gold project in Tanzania, while Tembo is an exploration-stage project where the company recently completed a maiden Mineral Resource Estimate that the company has said highlights the project's exploration potential.

Lake Victoria Gold did not disclose an expected timeline for reaching production at Imwelo beyond the targeted completion date for the financing itself.