(TheNewswire)
June 26, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp (the “ Company” or “Baru”) ( TSXV:BARU ) | ( OTCQB:BARUF ) announces that it has closed an oversubscribed privateplacement announced on June 16, 2023. The Company received $118,999.99and issued 3,966,666 Units, priced at $0.03 per unit. Each unit willbe comprised of one common share in the capital of the Company (a“Share”) and one transferable common share purchase warrant (a“Warrant”). Each Warrant shall be exercisable for one Share for 2years from the date such Warrant is issued at an exercise price of$0.05 for the first year and $0.10 for the second year. F inder’s fees of $420 are payable in cash and 14,000finder’s warrants were issued.
The proceeds raised from the Private Placement will be used forimmediate working capital while the Company finalizes the largerfinancing necessary to bring the Sangihe Gold project into production.
Three potential individuals or institutions are in various stages ofproposing the larger financing for the Sangihe Gold project. For onepotential Institutional Investor, the Company is happy to announcethat it has recently completed all requirements in their due diligenceprocess and has advanced to the Contract and Terms Stage. The Companyand this potential Institutional Investor are committed to concludingthe final negotiations as soon as possible. There are two otherinterested parties still undertaking due diligence.
An Insider of the Company has participated in theforegoing private placement offering which constitutes a "relatedparty transaction" as defined under Multilateral Instrument61-101 Protection of Minority Security Holders in SpecialTransactions (“MI 61-101”). Theparty has contributed $46,000 or approximately 40% of the offering.Such participation is exempt from the formal valuation and minorityshareholder approval requirements of MI 61-101 as neither the fairmarket value of the securities acquired by the insiders, nor theconsideration for the securities paid by such insiders, exceed 25% ofthe Company's market capitalization.
All securities issued in the first tranche of thePrivate Placement will be subject to a four-month hold period expiringOctober 26, 2023.
The Private Placement is subject to certain conditions including, butnot limited to, the receipt of all necessary regulatory approvals,including acceptance by the TSX Venture Exchange.
This news release shall not constitute an offer to sellor the solicitation of an offer to buy nor shall there be any sale ofthe securities in any state in which such offer, solicitation or salewould be unlawful. The securities have not been registered under theUnited States Securities Act of 1933, as amended, and may not beoffered or sold in the United States absent registration or anapplicable exemption from the registration requirements.
ABOUT SANGIHE GOLD PROJECT
The Sangihe gold project 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 and105,000 inferred ounces of gold, as reported inthe company's "Independent Technical Reporton the Mineral Resource Estimates of the Binebase and Bawone Deposits,Sangihe Project, North Sulawesi, Indonesia," dated May 30, 2017.Readers are cautioned that mineral resources that are not mineralreserves do not have demonstrated economic viability. The companyintends to proceed to production without the benefit of firstestablishing mineral reserves supported by a feasibility study.
The Company's 70-per-cent interest in the Sangihemineral tenement contract of work (CoW) is held through PT. TambangMas Sangihe (TMS). The remaining 30-per-cent interest in TMS is heldby three Indonesian corporations. The term of the Sangihe CoWagreement is 30 years upon commencement of the production phase of theproject.’
Baru has met all the requirements of the Indonesiangovernment and has been granted its environmental permit. The companyhas received approval for the upgrade of its licence to advance theSangihe project to construction and production.
Note: The company cautions readers that the anyproduction decision made by the company will not be based on aNational Instrument 43-101 feasibility study of mineral reserves thatdemonstrates economic and technical viability, and, as such, there maybe involved increased uncertainty and various technological andeconomic risks such as the interpretation of drill results; thegeology, grade and continuity of mineral deposits; the possibilitythat future exploration, development or mining results will not beconsistent with the Company's expectations; commodity and currencyprice fluctuation; failure to obtain adequate financing; regulatory,recovery rates, refinery costs, and other relevant conversion factors,permitting and licensing risks; general market and mining explorationrisks, and production and economic risks related to design andengineering, manufacturing, technological processes and testprocedures, and the risk that the project's output will not besaleable at a price that will cover the project's operating andmaintenance costs.
ABOUT BARU GOLD
Baru Gold is a dynamic junior gold developer withNational Instrument 43-101 gold resources in Indonesia, one of the top10 gold-producing countries in the world. Based in Indonesia and NorthAmerica, Baru's team boasts extensive experience in starting andoperating small-scale gold assets.
BARU GOLD CORP
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
info@barugold.com
For investor contacts more information, pleasecontact:
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 costs. Forward-lookingstatements should not be construed as investment advice. Readersshould perform a detailed, independent investigation and analysis ofthe Company and are encouraged to seek independent professional advicebefore making any investment decision. Accordingly, readers should notplace undue reliance on any forward-looking statement. Except asrequired by applicable securities laws, the Company disclaims anyobligation to update or revise any forward looking statements toreflect events or changes in circumstances that occur after the datehereof.
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