Katoro Gold PLC on Wednesday said its joint venture partner for the Imweru gold project in Tanzania has failed to provide proof of a key payment.
The London-based gold and nickel exploration and development company said its JV partner, Lake Victoria Gold, failed to provide proof of payment of the agreed capital contribution before the end of 2023.
Consequently, it has ‘formally engaged’ with LVG on the matter, and is awaiting a response.
Shares in Katoro plunged 17% to 0.12 pence each in London on Wednesday morning. However, the stock remains up 20% over the past 12 months.
The Imweru JV was announced in March 2022, after Katoro faced administrative hurdles in finalising a planned disposal of the project to LVG.
Under the terms of the JV announced at the time, LVG will earn an interest of up to 80% in the venture, and will be responsible for all funding requirements. It was also agreed that the JV would reimburse Katoro for previous expenditure of €792,000 by the end of 2023.
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