Lake Victoria Gold Ltd. secures $6 million in private placement amid rising gold prices
Lake Victoria Gold Ltd. (TSX: LVG), a Canada‑listed metals and mining company focused on gold exploration in Tanzania and across Africa, announced the successful closing of a $6 million private placement on 17 September 2025. The transaction was oversubscribed, prompting the company to upsize a concurrent private placement to an additional $2 million. The funds are earmarked for advancing the company’s exploration program, particularly on its flagship projects in the Lake Victoria region.
Market backdrop
Gold prices have been buoyant in the week leading up to the announcement. Equity InsiderNews, citing a PRNewswire release, highlighted that spot gold had crossed the $3 700 mark, a level projected by Goldman Sachs for year‑end 2025. The rally has been driven by expectations of a Federal Reserve rate cut and increased central‑bank buying, with sovereign institutions purchasing 166 tonnes in Q2 2025 alone—a 41 % jump over historical norms. In this environment, a company like Lake Victoria that specializes in African gold exploration can leverage the heightened investor appetite for the commodity.
Private placement details
The private placement was conducted on a non‑brokered basis. “We closed a $6 million private placement that was oversubscribed, and we have subsequently increased a related private placement to $2 million,” the company’s CEO said in a statement. The combined $8 million will be used to:
- Accelerate drilling on the Lake Victoria Gold Project – the company’s most advanced asset, which hosts multiple high‑grade gold targets identified through recent geochemical and geophysical surveys.
- Expand the Hanang Gold Project program – following a 3 km gold anomaly identified at Hanang (as reported by Gold Geochemistry), Lake Victoria plans to commence drone‑borne geophysics and a 380 km² magnetic survey later this month.
- Strengthen corporate finance – the additional capital will bolster liquidity, support future capital‑raising efforts, and provide a buffer against volatile commodity markets.
Investor implications
Lake Victoria’s market cap stands at approximately 32.9 million CAD, with a closing price of 0.18 CAD on 16 September. The company’s price‑earnings ratio is currently –9.54, reflecting its pre‑profit status and ongoing exploration focus. The private placement signals confidence from institutional investors in the company’s project pipeline and its management team’s ability to navigate the challenging African mining landscape.
The share price has experienced modest volatility over the past year, ranging from a low of 0.125 CAD in February to a high of 0.25 CAD in September. The infusion of capital is expected to enhance shareholder value by advancing key projects into the production pipeline and by improving the company’s balance sheet.
Forward‑looking projects
Lake Victoria’s exploration strategy is twofold:
- Lake Victoria Gold Project – Situated in the Lake Victoria basin of Tanzania, this project has already yielded several high‑grade gold anomalies. The company’s latest drilling program aims to delineate the extent of these deposits and assess their economic viability.
- Hanang Gold Project – Located in Kenya, the recent identification of a 3 km gold anomaly along the Hanang Licences offers a promising avenue for expansion. The planned drone‑borne geophysics and extensive magnetic survey are designed to map the structural controls that may host larger mineralisation zones.
Both projects benefit from the region’s favourable geological setting, including the Wandela‑Bassotu shear zone, which is known to host significant mineral deposits.
Conclusion
With the closure of a $6 million private placement and an additional $2 million upsized offering, Lake Victoria Gold Ltd. has secured the resources necessary to push forward its exploration agenda. The company’s timing coincides with a favorable macro‑environment for gold, potentially positioning it for increased investor interest and future production milestones. The next few months will be critical as Lake Victoria translates its geological findings into tangible assets that can drive long‑term shareholder returns.