(TheNewswire)
May 29, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp (the “Company” or“Baru”) ( TSXV:BARU ) | ( OTC:BARUF ) and itssubsidiary PT. Tambang Mas Sangihe (the “Company” or “TMS”) ispleased to announce the receipt of official correspondence from the Director of Engineering andEnvironment at the Ministry of Energy andMineral Resources of the Republic of Indonesia (“MEMR”). Theletter affirms the Company’s legal status to operate and producegold on Sangihe Island (“Sangihe”) and states that the Company’slicense (number 163.K/MB.04/DJB/2021) is active and valid.Furthermore, in the letter, MEMR officially requests that policecooperate with the Company, and stop all illegal mining on Sangihe.The letter was delivered to the following Government Leaders:
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Chief of the North Sulawesi Regional Police
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Director of Certain Crimes, Police CriminalInvestigation
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Director of Special Criminal Investigation of NorthSulawesi Regional Police
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Chief of Sangihe Islands Police
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Acting Director General of Mineral and Coal
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Inspector General of the Ministry of Energy and MineralResources
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Secretary of the Directorate General of Mineral andCoal
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Director of Mineral Business Development
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Head of the Ministry of Energy and Mineral ResourcesOffice of North Sulawesi Province
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Head of the Regional Environment Office of NorthSulawesi Province
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Coordinator at the Directorate of Engineering andEnvironment of Mineral and Coal
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Coordinator of Mine Inspections for North SulawesiProvince
Most importantly, this official letter satisfies a duediligence prerequisite for a prospective institutional investor and anadministrative process for the police.
The Company recognizes that clarification is requiredfollowing a recent social media campaign by illegal miners and theirsupporters that falsely suggested the Company’s permits were revokedor its operations impacted. The Company confirms its permits are valid and remain in goodstanding . The Company is legally able to producegold on Sangihe. The Company’s AMDAL or Environment Permit andContract of Work (“CoW”) have never been revoked and remain valid,and the Supreme Court of Indonesia has affirmed the Company’s AMDAL.Statements to the contrary are false.
On January 17, 2023, the Company announced the resultsof a challenge filed in an Administrative Court and against the MEMR(the “Jakarta Lawsuit”). The presiding judge in the JakartaLawsuit ordered the cancellation of the Decree of the Minister of MEMRdated January 29, 2021, concerning Approval for Increasing the Stageof Production Operation Activities of the Company’s CoW. Thedecision does not affect the Company’s permits or CoW and is onlyreferring to an administrative step called a Stage of Activityupgrade.
The Company’s CoW with the Republic of Indonesia is alegally binding agreement, therefore, the conditions specified withinare legally binding between the Company and the State. The CoW cannotbe modified without the mutual consent of both the Company and theState. The MEMR is the State’s sole designated representative andhas the final authority in overseeing, administrating, and authorizingthe Company’s actions according to the CoW.
The Company’s CoW outlines the conditions ofoperations on Sangihe. The operational activities include fivedistinct Stages of Activity: General Investigation, Exploration,Feasibility Study, Construction, and Production Operation. To upgradeto the next Stage of Activity, the CoW lists specific criteria thatthe Company must meet. Since signing the CoW in 1997, the requirementsfor each Stage of Activity upgrade in the contract have not changed.Once the conditions specified within the CoW are met, the Stage ofActivity upgrade is guaranteed by law. The Minister of MEMR has thesole and ultimate authority authorizing Stage of Activityupgrades.
The Jakarta Lawsuit challenged only the Minister ofMEMR’s decree to approve upgrading the Stage of Activity toProduction Operation status. When adjudicating the Stage of Activityupgrade to Production Operation, the Minister of MEMR needs onlyconsider terms of the requirements for the issuance of an increase inoperations within the CoW. The Small Island Utilization Permit is nota requirement within the Company’s CoW, and MEMR has never requestedthe Company obtain one.
The MEMR has reviewed the Court’s decision. Accordingto MEMR, the Company has fulfilled all necessary requirements of theCoW for production. Therefore, the MEMR has determined, and in thisofficial letter reaffirmed, that the Company’s current Stage ofActivity is Production Operation status. As the Jakarta Lawsuit hadreached the Supreme Court, there cannot be additional lawsuits on thismatter.
Mr. Terry Filbert, CEO of Baru Gold,commented, “We are verypleased to receive the letter from the MEMR affirming our legal statusto operate and produce gold on Sangihe Island. The Company is thelargest single employer on Sangihe and we appreciate the support frompolice, government officials, and local residents. Securing thepreviously announced financing is progressing well and the Company islooking forward to entering into production. Not only does the lettervalidate the hard work of our team in Indonesia but it also satisfiesa prerequisite for the financing that will fund the Company intoproduction. ”
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 tooperate and produce Gold on Sangihe and has been granted itsenvironmental permit (AMDAL).
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
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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