(TheNewswire)
Vancouver, BC - TheNewswire - February 7, 2023 - Baru Gold Corp (“ Baru ” and its subsidiary PT. Tambang MasSangihe (“ TMS ”) or the “ Company ”) ( TSX.V:BARU)(OTC:BARUF) is happy to announce to stakeholdersand investors the signing of an agreement with an Asian-basedInvestment and Banking Advisory Firm (the “Investment Firm”) toassist with placing a USD 15 Million gold-prepayment agreement(“Gold Loan”). The financing to be covered by the Gold Loan is inthe form of a loan that is non-dilutive to shareholders. The expecteddate of closing is in approximately 90 days. The Gold Loan is inaddition to the Private Placement announced on January 4, 2023.
The Investment Firm is headquartered in Singapore withoffices worldwide and is a leading finance provider to growingcompanies in Southeast Asia, the Middle East andAfrica . The Investment Firm has a long andsuccessful track record of investments in Indonesia. With worldwidecapital networks, they have raised over USD 1.6 Billion and workedextensively on securing financing for various mining companies andcompanies that trade precious metals.
The terms of the engagement of the Investment Firminclude the payment of: (i) a non-refundable commitment fee ofUS$7,500; (ii) a non-refundable milestone fee of US$10,000 payableupon acceptance and signing of any indicative term sheet or contractwith the proposed lender; (iii) a 2.75% feebased on the prepayment amount and the loan principal payable upon theclosing of the loan transaction; and a 2% commission on the sale valueof any gold dore sold to any purchasing parties introduced by theInvestment Firm to the Company.
The primary objective of the Gold Loan is to bring theSangihe Project into production. Most of the funding will be used toexpand land acquisition, construct more heap leach pads, buildadditional pits and other necessary production facilities, hiresecurity, and obtain a Merrill Crowe Plant. A Merrill Crowe Plant willsignificantly improve the processing speed and recovery rates of gold,allow the extraction of silver and copper, and reduce the Company’senvironmental impact. Based on the metallurgical test resultsannounced on April 11, 2022, with the utilization of a Merrill CrowePlant, the Company expects gold recoveries of 85% and silverrecoveries to reach approximately 96%.
The secondary objectives of the Gold Loan are to retireold debt and to expand the drilling and exploration program. The initial area targeted for this drillingprogram is covered in the Sangihe 2010 NI 43-101 report thatidentified 835,000 ounces of gold as an inferred resource betweenBinebase and Bawone villages over an approximately 1.2 kilometres ofstrike length. An infill drilling program will be conducted in thisarea to upgrade some inferred resources into indicated and measuredresource status.
Thereafter, exploration drilling will continue over anadditional 1.45 kilometres from Bawone to the South of Salurang and inother targeted regional areas. As announced on February 7, 2022, andFebruary 14, 2022, T he Murphy Geological Services Structural Survey identified 23additional exploration targets and subsequent ground truth sampling atthe Kingston Target revealed high-grade gold (14.60 g/t) and silver(13.60 g/t) assays. Most of the area within theCompany’s Contract of Work is unexplored and a priority of theCompany is to identify new targets to expand production operations.
Mr. Terry Filbert, CEO of Baru Gold, commented,“ I am thrilled with thisnew relationship. Not only will these funds be useful on Sangihe, buthopefully, we can continue to work together in the future. ForSangihe, this capital raise will be more than enough to bring us intoproduction and allow us to explore across targeted areas within ourContract of Work. I believe the exploration program will quicklyjustify constructing additional heap leach pads and pits to expandproduction operations. With the increased material from the heap leachpads, the Merrill Crowe Plant is exactly what we will need to scalethe operation. This capital injection will allow me to grow theproject into the one I’ve long envisioned, while supporting theeconomic growth and development on Sangihe Island. With Sangihe inproduction, I can then focus on the vision for the Company that ourinvestors and I share.”
The Company appreciates the ongoing support it receivesfrom the local residents of Sangihe, who are hoping for a bettereconomy and safer environment, and the local government officials thatare actively supporting their aspirations.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI,Chief Geologist of Baru is the Qualified Person as defined under theN1 43-101 who has reviewed and approved the contents of this releasepertaining to the Sangihe Project held by the Company.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located on the Indonesianisland of Sangihe, off the northern coast of Sulawesi. Sangihe has anexisting National Instrument 43-101 inferred mineral resource of114,700 indicated and 105,000 inferred ounces of gold, as reported inthe Company's “Independent Technical Report on the Mineral ResourceEstimates of the Binebase and Bawone Deposits, Sangihe Project, NorthSulawesi, Indonesia” (May 30, 2017). Readers are cautioned thatmineral resources that are not mineral reserves do not havedemonstrated economic viability.
The Company intends to proceed to production without the benefit offirst establishing mineral reserves supported by a feasibility study.The Company cautions readers that the any production decision made bythe Company will not be based on a NI 43-101 feasibility study ofmineral reserves that demonstrates economic and technical viabilityand as such, there may be involved increased uncertainty and varioustechnological and economic risks
The Company's 70-percent interest in the Sangihe-mineral-tenementContract of Work (“CoW”) is held through PT. Tambang Mas Sangihe(“TMS”). The remaining 30-percent interest in TMS is held by threeIndonesian corporations. The term of the Sangihe CoW agreement is 30years upon commencement of the production phase of the project.
Baru has met all the requirements of the Indonesian government and hasbeen granted its environmental permit.
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold developer with NI43-101 gold resources in Indonesia, one of the top ten gold producingcountries in the world. Based in Indonesia and North America, Baru’steam boasts extensive experience in starting and operating small-scalegold assets.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI,Chief Geologist of Baru Gold Corp. is the Qualified Person as definedunder NI 43-101 who has reviewed and approves the content of thisrelease.
BARU GOLD CORP
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
info@barugold.com
+1- 206-890-8285
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
kevin@jeminicapital.com
647-725-3888 ext 702
Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
Certain statements in this NewsRelease, which are not historical in nature, constitute “forwardlooking statements” within the meaning of that phrase underapplicable Canadian securities law. These statements include, but arenot limited to, statements or information concerning future workprograms, results and timing of any work programs, the Company’sperformance or events as of the date hereof. These statements reflectmanagement’s current assumptions and expectations and by theirnature are subject to certain underlying assumptions, known andunknown risks and uncertainties and other factors which may causeactual results, performance or events to be materially different fromthose expressed or implied by such forward looking statements. Thoserisks include the interpretation of drill results; the geology, gradeand continuity of mineral deposits; the possibility that futureexploration, development or mining results will not be consistent withour expectations; commodity and currency price fluctuation; failure toobtain adequate financing; regulatory, recovery rates, refinery costs,and other relevant conversion factors, permitting and licensing risks;general market and mining exploration risks and production andeconomic risks related to design and engineering, manufacturing,technological processes and test procedures and the risk that theproject’s output will not be salable at a price that will cover theproject’s operating and maintenance cost.
Copyright (c) 2023 TheNewswire - All rights reserved.