MetalNRG PLC (LSE:MNRG) announced that Lake Victoria Gold Ltd has informed it of the proposed sale of the Imwelo Gold Project.
Lake Victoria Gold, in which MetalNRG has a minority equity interest, will sell the Tanzania-based project to Tembo Gold Corp (TSX-V:TEM) under the agreement.
Tembo and Lake Victoria Gold signed a license purchase agreement on 9 August for the project, with the former also having agreed a C$11.5 million financing with Taifa Mining and Civils Ltd.
MetalNRG had been poised to acquire Lake Victoria Gold in October 2020 but cancelled the purchase the following January.
Tembo’s bid to acquire the project, which is fully permitted for mine construction and production, is conditional on a number of factors, MetalNRG added.