MetalNRG PLC - London-based resource investing and exploration company - Enters bid implementation for the acquisition of Lake Victoria Gold Ltd, owner of 538 mining licence in Tanzania, which holds a resource of 300,000 ounces, including a reserve of 90,000 ounces.
Lake Victoria is valued at GBP6 million, and MetalNRG will issue 750.0 million shares at a price of 0.08 pence each.
Once acquired, Lake Victoria will starting and mining and processing at a rate of 12,000 ounces per annum, and drill the ore zone at the Imwelo project to expand its resource and reserve.
"The Imwelo project ticks all our investment criteria, near term production, substantial exploration and development upside and a strong management team to deliver the project. Additionally, it allows MetalNRG to set up a second special purpose vehicle within the group, this one focused and totally dedicated to the development of gold projects, which I believe is a compelling proposition," said Chief Executive Officer Rolf Gerritsen.
Current stock price: 1.40 pence
Year-to-date change: more than doubled from 0.63p
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Metalnrg Plc (MNRG)