Katoro Gold PLC (LON:KAT) has updated investors regarding the sale of the Imweru gold project, located in Tanzania, to Lake Victoria Gold Limited, a private Australian group.
While the two miners initially deferred the completion to 31 October, Lake Victoria has now requested a further extension, currently under consideration by Katoro’s board.
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In recognition of the previous extension, Lake Victoria agreed to issue Katoro with shares with a value of up to US$50,000, also due on 31 October.
The AIM-listed firm pointed out the completion of the sale is in its best interest and said the gold price is moving in the company’s favour, rising 17% in the year-to-date to US$1,495 per ounce.
“The operating environment for gold companies in Tanzania is experiencing some recovery and investor sentiment toward the gold sector in-country is improving,” Katoro’s executive chairman Louis Coetzee said in a statement.
“We are encouraged by the emerging optionality that the increasing interest in our gold interests provides. So, whilst we would like to see the LVG acquisition complete, and we expect that to occur, there are possible alternative value generative routes available.”