(TheNewswire)
September 11, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp ( TSXV:BARU ) | ( OTC:BARUF ) (the “Company” or “Baru”) and its subsidiary PT. Tambang Mas Sangihe (the "Company"or "TMS") is pleased to announce to shareholders they havecompleted applying and submitting all necessary documents to request anew upgrade to Production Operation Status to the Ministry of Energyand Mineral Resources of the Republic of Indonesia ("MEMR")for 25,000 ha. This Production Operation Status will replace theCompany’s current Production Operation Activity Status. Theapplication process started on July 14, 2023, and concluded onSeptember 11, 2023.
MEMR informed the Company their current ProductionOperation Activity Status must be revoked before they could issue anew Decree from the Minister authorizing an upgrade to ProductionOperation Status. The Company agreed and recently requested the MEMRissue this revocation. The cancellation of this Activity Stage relatesonly to an administrative process within the Company’s Contract ofWork (CoW). The Company’s CoW and all permits are valid and are notaffected by this administrative step.
On January 17, 2023, the Company announced the resultsof a challenge filed in an Administrative Court against the MEMR’s Decree of the Minister that increased the Stageof Activity to Production Operation Status (the"Jakarta Lawsuit"). As announced on May 29, 2023, followingMEMR's review of the Jakarta Lawsuit, the Ministry confirmed theCompany had fulfilled all necessary requirements of the CoW forProduction Operation Status and was legally allowed to operate andproduce gold. The MEMR is the Republic of Indonesia's sole designatedrepresentative and has the final authority in overseeing,administrating, and authorizing the Company's actions according to theCoW.
MEMR's desire to see the Company in production remainsunchanged. However, the Company has decided the best action andlong-term solution is to obtain a new Decree from the Minister of MEMRgranting the Stage of Activity to Production Operation Status. A finalstep in applying for a new Production Operation Status is requestingthe cancellation of the current Production Operation Status.
For the last several months, the Company has held manymeetings with the MEMR to confirm and meet the requirements andconditions for a new Stage of Activity upgrade to Production OperationStatus. The Company has met with the Directorate General of Mineralsand Coal, namely the
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Director General of Mineral and Coal
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Secretary General of Mineral and Coal
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Coordinator of Mineral and Coal Law
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Legal Bureau Staff of the Ministry of Energy andMineral Resources
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Director of Coal Mineral Business Development
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Coordinator of Mineral Commercial Relations
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Coordinator of Business Services, and
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Coordinator of Supervision of Mineral Production andMarketing Operations.
On August 24, 2023, the MEMR formally accepted asummary of the conclusions reached with the Company to issue a newDecree granting the Stage of Activity upgrade to Production OperationStatus. To avoid any confusion, the Company also supplied the NorthSulawesi Regional Police with a copy of the correspondence. Forshareholder awareness, the Company will summarize the planned andagreed procedures set out within the correspondence.
In the correspondence, the parties agreed the firststep was to annul the current Stage of Activity Production OperationApproval No. 163.K/MB.04/DJB/2021. This cancellation brings the MEMRinto full compliance with the ruling from the Jakarta Lawsuit and hasno impact on the Company’s CoW or permits. With the Minister’sDecree cancelled, the MEMR will be able to issue a new decree toProduction Operation Status. The MEMR must first cancel a decreebefore issuing a new one. This cancellation has already happened andwas released late afternoon on Friday, September 8, 2023. On Monday,September 11, 2023, the Company filed with the MEMR a new request foran upgrade to Production Operation Status with all requireddocumentation and conditions met. The key difference between theoriginal and new request is the size of the operational area.
The new application reduces the area of operations from42,000 ha to 25,000 ha. The excluded areas are specifically mentionedin the Jakarta Lawsuit and include protected forested area, shoreline,or urban areas. These areas were always outside of the Company'soriginal work plan and are not gold-bearing. This new reduced areaonly includes the gold-bearing area on Sangihe Island, where theCompany always intended to base its operations. For the Company, thereare several financial benefits and no negative consequences inreducing the area covered by the request for Production OperationStatus. For MEMR, the area reduction allows them to comply with thedecision of the Jakarta Lawsuit and greatly simplifies the Stage ofActivity Upgrade approval.
As all requirements by the MEMR are met in the newapplication, Indonesian law guarantees the Stage of Activity upgradeto Production Operation Status. The upgrade is an administrative stepprotected by the Company's CoW. As the Jakarta Lawsuit reached theSupreme Court, there cannot be additional lawsuits on the sameissue.
To reiterate, the Company initiated the request to theMEMR to cancel the current Stage of Activity Upgrade Status so itcould obtain a new one. The cancellation has no impact on theCompany's permits or CoW, which are all valid and remain in goodstanding . The cancellation will bring theMEMR into compliance with the Jakarta Lawsuit. The area reductionavoids environmentally sensitive areas on Sangihe Island, are non-goldbearing and were always outside the Company’s planned area ofoperations.
Mr. Terry Filbert, CEO of Baru Gold,commented, "I am very pleased with the continued support andcooperation from the MEMR. We are now in the final stages of approvalfor our new Stage of Activity upgrade to Production Operation Status.I can understand the alarm that a shareholder might experience whenthey discover that our current Decree from the Minister has beencancelled. However, I would urge shareholders to view this action as anecessary final step in obtaining a new Stage of Activity Upgrade toProduction Operation Status. We have been working hard on a newapplication for months and were fully aware of the cancellation. Thiscancellation is all part of the plan previously agreed to by MEMR. Wehave always been legally able to operate but I believe this is abetter long-term solution.”
The Company reminds shareholders that a social mediadisinformation campaign by illegal miners and their supporters willlikely begin after the news of the cancellation of the Minister'sDecree becomes public. Typically, these individuals falsely assert theCompany's permits are revoked, cancelled, cannot operate or similar.These malicious actors will probably repeat their propaganda again toattempt to harm shareholders or the Company’s reputation. Concernedshareholders are urged to reach out to the Company for correctinformation.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located onthe Indonesian island of Sangihe, off the northern coast of Sulawesi.Sangihe has an existing National Instrument 43-101 inferred mineralresource of 114,700 indicated and 105,000 inferred ounces of gold, asreported in the Company's “Independent Technical Report on theMineral Resource Estimates of the Binebase and Bawone Deposits,Sangihe Project, North Sulawesi, Indonesia” (May 30, 2017). Readersare cautioned that mineral resources that are not mineral reserves donot have demonstrated economic viability.
The Company intends to proceed to production withoutthe benefit of first establishing mineral reserves supported by afeasibility study. The Company cautions readers that the anyproduction decision made by the Company will not be based on a NI43-101 feasibility study of mineral reserves that demonstrateseconomic and technical viability and as such, there may be involvedincreased uncertainty and various technological and economicrisks
The Company's 70-percent interest in theSangihe-mineral-tenement Contract of Work (“CoW”) is held throughPT. Tambang Mas Sangihe (“TMS”). The remaining 30-percent interestin TMS is held by three Indonesian corporations. The term of theSangihe CoW agreement is 30 years upon commencement of the productionphase of the project.
Baru has met all the requirements of the Indonesiangovernment and has been 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
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 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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