(TheNewswire)
August 3, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp ( TSXV:BARU ) | ( OTC:BARUF ) (“Baru” and itssubsidiary PT. Tambang Mas Sangihe (“TMS”) or the “Company”)wishes to inform stakeholders and investors on the signing of aMemorandum of Understanding (MoU) that includes both financial andoperational terms with mine contractor CV. Mahamu Hebat Sejahtera (the“Contractor”). The Contractor is a resident of Sangihe Island withprevious mining experience.
The terms of the MoU state that the Contractor will paythe Company approximately CAD $6 million over three months. Inexchange, the Company grants the right to the Contractor to operateand produce gold for 5 years on 65 of the 42,000 ha within theCompany’s Contract of Work area.
On receipt of funds, the Company will license to theContractor, a previously operating gold mine. The Contractor willmanage and expand this operation, and fund all additional costsrelated to staffing, land acquisition, construction of the mining pit,heap leach pads, and reclamation. As the operations were previouslyproducing gold, the time necessary to produce cash flow will beshortened considerably.
Under the terms of the MoU, the Contractor will receive65% of the total gold recovered, and the Company will retain 35%.
This agreement does not prevent the Company fromopening additional worksites within the Contract of Work area. TheCompany retains control of the Sangihe Project and will oversee andsupervise all operations led by the Contractor. The Contractor mustabide by the same environmental and reclamation standards required ofthe Company by Indonesian law.
The Company and Contractor are currently negotiatingterms of the operating agreement, which may be subject to mutuallyagreed to changes from the MoU. The current negotiations have beenproductive, and the parties look forward to a conclusion beingreached. All due diligence, by both parties, has beencompleted.
As this transaction involves no equity in the Company,the financial agreement is nondilutive to shareholders and the fundsdo not need to be repaid. There will be no administrative fees orcommissions.
Mr. Terry Filbert, CEO of Baru Gold, commented,“ I am thrilled at thisopportunity with a household name on Sangihe. The contracting companyis run by a family that have deep and lasting relationships onSangihe. They have lived on the Sangihe for generations and aremotivated to not only protect but improve the Island. The family arelong-time and active participants in local community and politicallife, and have years of mining experience. In addition toproviding the operationalsupport and sufficient capital we require to be almost immediately incash flow, this agreement is further evidence of our commitment to thepeople of Sangihe.”
The Company is fully permitted and legally entitled tooperate and produce gold on Sangihe Island. We are committed to doingso in safe manner following environmental regulations outlined in ourEnvironmental Permit.
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
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.
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