LONDON, UK: Katoro Gold Plc (AIM: KAT), the gold and nickel exploration and development company, has entered right into a Joint Venture Agreement with Lake Victoria Gold (LVG) for the event of the Company’s Imweru Gold Project (‘Project’). Under the Agreement, LVG will earn as much as 80% inside the Project, with the balance of 20% being held by Katoro as a carried interest.
The administrative course of to finalise registration of the sale transaction, and therefore set off ongoing milestone funds due to Katoro, was subsequently indefinitely delayed due to unexpected statutory barriers associated to the switch of possession at project level.
This created a situation the place no definitive schedule date could be established for switch of possession and issue of the related milestone convertible mortgage notes. In light of this unsustainable situation the Company and LVG agreed to cancel the sale transaction and to enter right into a Joint Venture instead (“the JV”).
Katoro CEO, Louis Coetzee, commented: “The decision to cancel the sale of the Project and to enter right into a Joint Venture instead was a strategic decision by the Katoro Board to address challenges that made it impossible to full the sale settlement inside an acceptable time frame. We are looking ahead to rising this JV-partnership with LVG, who’s currently developing the Imwelo Gold Project. With Imwelo being located adjoining to Imweru and in superior stage of development towards first production, we believe that the mixture of the 2 projects will create a bigger and considerably extra financial project that will be able to draw appropriate funding to speed up the additional development and exploitation of the mixed gold mining project.”
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