VANCOUVER, British Columbia, Canada – Lake Victoria Mining Company (OTCBB:LVCA) is pleased to announce that it has entered a Letter Agreement with Sprout TZ Inc. (Sprout) that provides an option for the Company to acquire up to an eight percent (8%) ownership interest in Sprout.
Sprout is a private company that has access to acquire arable land in Tanzania, East Africa for the cultivation of Arabica and Robusta coffee. Sprout has a unique business and marketing model for the worldwide sale of coffee plants and coffee bean production.
Sprout has the potential ability to positively effect the existing coffee growing industry in Tanzania that is 90% comprised of small scale farmers. The Company forecasts achieving revenues in excess of $30 million during its first five years of operations.
The terms of the Letter Agreement allow for proper due diligence to be conducted by both companies with a closing date set for February 15, 2016.
The agreement provides Lake Victoria with three incremental options to acquire up to a total of eight percent of Sprout’s current issued and outstanding share capital in exchange for an aggregate total of 30,000,000 common shares of Lake Victoria. Several directors of Lake Victoria are also shareholders of Sprout.
Roger Newell, Lake Victoria’s Chairman said “Coffee isn’t gold but it is the second largest traded commodity in the world next to oil. With China and India now starting to become coffee drinkers this could be perfect timing for us to diversify our portfolio.
Worldwide coffee is a rapidly expanding market and we have the opportunity to get involved in Tanzania, a country that we are very familiar with, and where we have been operating for more than nine years.
The average coffee plant produces a new crop every year for 50 years or more which gives us the potential to enjoy a sustainable and long term cash flow.”
President and CEO, David Kalenuik is pleased to welcome and announce the addition of Greg Hill as a new member of the Board of Directors. Greg comes to us with a very successful background in financial advisory and business development consulting and we look forward to his contributions toward our success. In addition to joining the Board of Directors, Mr. Hill will also become the Chairman of the Audit Committee.
Greg Hill is President of Englewood Capital, LLC which provides investment capital and financial advisory and consulting services.
Previously he was CFO of Geovic Mining Corp, a public exploration company with international mineral projects in Africa, North America and Asia.
Earlier in his career he had assignments in corporate and international project finance for natural resources with Phillips Petroleum Co. and Freeport, (now Freeport-McMoRan Inc.). He received a B.Sc. from MIT and an MBA from the Harvard Business School.
Readers are encouraged to visit the “LVCA Media Room” on the Company’s corporate website for informational audios and videos about ongoing developments in the Company and for more information about Sprout visit www.sprouttz.com.
About the Company
Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania which is Africa’s fourth largest gold producer, behind South Africa, Ghana and Mali, also has reserves of uranium, nickel and coal. In the year ending January, 2015 Tanzania gold exports totaled $1.31 billion.
