(TheNewswire)
September 20, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp ( TSXV:BARU ) | ( OTC: BARUF ) (“Baru” and its subsidiary PT. Tambang Mas Sangihe(“TMS”) or the “Company”) is happy to announce to shareholdersthat a second mining contractor PT. Putra Rimpulaeng Persada (“Contractor”) has signed a legally bindingcontract to operate and produce gold on Sangihe Island. The owners andemployees of PT. Putra Rimpulaeng Persada are residents ofSangihe.
The Contractor will pay the Company IDR 3,750,000,000(CAD $330,000 1 ) for the right toexclusively operate across 7 ha within the Company’s Contract ofWork. The area of operations is separate from that announced on August8, 2023.
The Contractor has already paid the Company IDR1,000,000,000 (CAD $88,000 1 ) as a non-refundable deposit. Theoutstanding balance will be made in two equal payments. The firstpayment is due when the Contractor starts carrying out activities onthe land area and the second paid 30 days after the second payment ismade.
The Contractor is responsible for all operational,production and site remediation expenses. The Contractor will receive65% of the total gross receipts from the sale of gold recovered. TheCompany will receive 35% of the total gross receipts from the sale ofgold recovered.
The Contractor will operate a recently producing goldmine within the contracted 7 ha. All equipment is already on site, theland cleared, and construction complete. The Contractor willimmediately restart operations following the Stage of Activity upgradeto Production Operation Status announced on September 11, 2023. Thesigning of this agreement by a local mining company prior to the Stageof Activity upgrade underscores the certainty of issuance.
The Company will supervise all activities andco-process the gold. The Company will be responsible for refining thegold and distributing the funds received from the sale of the gold.The Contractor must abide by the same environmental and reclamationstandards required of the Company under Indonesian law, including amercury prohibition.
The Company retains complete control of the SangiheProject. The Company’s Contract of Work includes 25,000 ha of goldbearing land in areas that are neither in environmentally sensitivezones nor near urban areas. This contract for 7 ha does not preventthe Company from opening or contracting out additional worksites.
Mr. Terry Filbert, Chairman and CEO of Baru Gold,commented, “ This is oursecond local partner and further builds on the broad support we haveto operate on Sangihe. Together, we are transforming unchecked,unsafe, and unlicensed mining into a regulated, monitored, andenvironmentally responsible industry that’s directly contributing tothe local economy. To date, we have allocated 22 of 65 ha to our localpartners. For the Company, this now means we have two independentsources of gold production. For Sangihe residents, we have just helpedcreate an additional form of badly needed local employment with safeworking conditions. This partnership is another win for Sangihe, theenvironment, the Company, and our shareholders. ”
The Company is currently negotiating with otheradditional local partners to award the remaining 43 ha of land. Theprice paid by the Contractor is based on land size and estimated goldcontent. The Company also plans to develop their own operations onSangihe.
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). Readers are cautioned thatmineral resources that are not mineral reserves do not havedemonstrated economic viability. The Company intends to proceed toproduction without the benefit of first establishing mineral reservessupported by a feasibility study. The Company cautions readers thatthe any production decision made by the Company will not be based on aNI 43-101 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.
The “CoW covers an area of 42,000 ha, of which only65 ha have been explored. Baru has met all the requirements of theIndonesian government and has been granted its environmentalpermit.
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.
1 Theconversion rate posted by the Bank of Canada onSeptember 15 th is 0.000088 IDR to $1 CAD
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