(TheNewswire)
May 4, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp ("Baru" and itssubsidiary PT. Tambang Mas Sangihe ( TSXV:BARU ) | ( OTC: BARUF ) ("TMS")or the "Company") is delighted to inform stakeholders andinvestors that the Company's work on Sangihe has received the NationalVital Object designation. We are also announcing the withdrawal of thelawsuit filed by the Company, announced on August 25, 2022.
The Company holds a Contract of Work with theGovernment of Indonesia that provides the legal right to explore,construct, and produce gold on the Island of Sangihe. The Governmentof Indonesia must uphold the terms of the Contract. In August of 2022,the Company filed a lawsuit to resolve issues preventing thefulfillment of the Contract of Work's terms.
The objective of the court filing was to pursuefinancial damages or, preferably, appropriately support the Companyand their contractual rights to mine gold on Sangihe Island. Thelawsuit named the President of the Republic of Indonesia and nationalheads of government agencies, along with alleged illegal miners andtheir supporters in the Sangihe Police and local government.
The lawsuit praises President Joko and appeals forsupport in resolving documented issues created by his subordinates.Many of the individuals named in the lawsuit were operating forpersonal enrichment and actively interfering with or failing tosupport the Company. A key issue raised by the Company was localgovernment officials and police refusing to protect Company staff andequipment while overtly supporting illegal mining. Without question,the refusal by the Sangihe Police to enforce the rule of law preventedthe Company from entering production status.
The Company now believes the issues raised in thelawsuit are no longer present and has withdrawn the lawsuit.
The Company notes that President Joko explicitlyacknowledged the harm of illegal mining and has ordered branches ofthe military and police to stop the practice. The Company is asupporter of President Joko. The Company also agrees with PresidentJoko's comments on the environmental destruction, criminal activity,and economic harm from the loss of tax revenue caused by illegalmining across Indonesia. The Company is the largest taxpayer onSangihe Island, the largest direct foreign investor, and is committedto environmental protection and community development on SangiheIsland.
The Company also notes significant leadership changeswithin the Regional North Sulawesi and Sangihe Police forces. TheRegional North Sulawesi Police Force has entirely new leadership –Police Chief (Kapolda) Setyo Budiyanto and Vice-Regional Head(Wakapolda) Jan Leonard de Fretes. Both men have prioritized removingall illegal mining operations in North Sulawesi, including SangiheIsland. Senior representatives of the Regional North Sulawesi PoliceForce have visited Sangihe Island to observe the illegal miningoperations. They are fully aware of the false information maliciouslyspread about the Company.
The Company also wishes to welcome the new local headof Police on Sangihe (Kapolres) Dhana Ananda Syahputra. Since hisappointment, the Company has noted the reorganization within the local Sangihe police force. The Company truststhat the local police will continue to enforce the rule of law andnever allow illegal miners to flourish on Sangihe Islandagain.
National VitalObject
The Company is also happy to announce that the SangiheProject has been designated a National Vital Object. The designationofficially recognizes the Sangihe Project as vital to the nationalinterests of Indonesia. With this designation, the Company is assigneda National Vital Object Maintainer. This individual is an officialrepresentative and will be the liaison with the Company. NationalVital Object Maintainer’s role is to secure, protect and resolve anydisruption or disorders directed at the National Vital Object. TheState Police of the Republic of Indonesia is obligated to providesecurity assistance to a National Vital Object. As a National VitalObject, the Company receives special protections and prioritytreatment. Only a handful of entities are eligible for such adesignation, including foreign embassies, national monuments, andprojects vital to securing Indonesia's strategic sources ofincome.
Baru Gold CEO, Terry Filbert, commented," I amthrilled with the recent developments. Receiving the National VitalObjects designation, the support of the Indonesian government, police,and the restoration of the rule of law, changes literally everything.To be very clear, we have strong local support from the community onSangihe. We have worked hard to develop relationships with residentsand will continue to do so. Once in operation, the economic anddevelopment opportunities we will provide will beneficially impacteveryone on Sangihe – not just concentrate wealth into the hands ofa few. For the last two years, the Sangihe community has literallybeen terrorized by illegal miners and their vocal supporters who haveopposed our operations. We will never get the people benefiting fromthe illegal mining supporting a legal mining company but – ourNational Vital Object designation now obligates the State Police toprotect our work on Sangihe."
The Company also wishes to stress that while it haswithdrawn the lawsuit, it will continue to pursue the illegal minersand their supporters in both criminal and civil courts. The Companyhas already filed criminal and civil complaints against individualsthat have broken the laws of Indonesia and harmed the Sangihecommunity.
In Indonesia, the penalty for illegal mining is up to 5years of prison and approximately CAD $9 Million in fines.
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.
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
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