(TheNewswire)
May 1, 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 updatestakeholders and investors on progress in securing financing to bringthe Sangihe Project into production. The Company has pursued twomethods of funding – a CAD 20 Million gold-prepayment loan("Gold Loan") led by an Asian-based Investment and BankingAdvisory Firm, and a non-brokered private placement.
The Company is currently negotiating the Gold Loan withseveral Institutional Investors from both International andIndonesian-based markets. The interested parties are already miningprecious metals or coal, provide mine services, or have substantialexperience investing within Indonesia. Negotiations are going well andInstitutional interest in the Sangihe Project was higher thanoriginally anticipated.
Several coal mine operators have expressed interest inthe Gold Loan. With the price and demand of coal declining, severalcoal mine operators within Indonesia have diversified their operationsby mining or increasing their exposure to gold. The Sangihe Project isa particularly desirable investment owing to its proven ore reservesand additional opportunities identified from the Company's completedstructural study and planned drilling program.
Although the Company cannot comment on the specifics ofthe negotiations, the candidate investors have so far respondedfavorably on the conditions of the proposed Gold Loan. Some potentialinvestors have also suggested additional types of support. Currentnegotiations include gold-prepayment loans only, operational andin-kind support, and a combination of a gold-prepayment loan andoperational support. Importantly, all current negotiations arenon-dilutive to Baru shareholders. The Company is confident insecuring the Gold Loan from one or group of the InstitutionalInvestors.
The Company is targeting the end of May to concludenegotiations.
The Company has declined several offers for acquisitionand is not seeking to be acquired. In that the Company is not yet inproduction any acquisition would not provide shareholders a fair valuefor their investment.
Mr. Terry Filbert, CEO of Baru Gold, commented, “ I am delighted with theInvestment Banking Firm and thrilled with the discussions we arehaving on the gold-forward loan. The Investment Banking Firm has arange, depth, and scope of contacts that has allowed us to expand ourfinancing network to include the type of Investor that we have notbeen able to connect with previously. Our ongoing negotiations areconstructive and positive. The upcoming financing and resultingpartnerships will expedite the progress of the Company by leaps andbounds, whileconcurrently continuing to support the economic growth, environmentalprotection, and development on Sangihe Island.”
The Company wishes to reiterate to shareholders andinvestors our legal right to develop and operate a gold concession onSangihe Island. All permits are current and valid. The Ministry ofEnergy and Mineral Resources of Indonesia maintains online records forpublic review. Investors can use the below link to confirm thevalidity of our Production Operation Status.
https://modi.esdm.go.id/portal/detailPerusahaan/7410/
Furthermore, with the Company having been the victim ofa disinformation campaign, the current share price does not accuratelyrepresent the value of the Company's resources. Based on the stage andstate of negotiations for the Gold Loan, and to prevent unnecessarydilution, the Company is suspending the private placement previouslyannounced on April 14 th , 2023. The Company thanks the new and manylong-term shareholders for their contributions in previous financingrounds and ongoing support.
GRANT OF STOCK OPTIONS
The Company announces that it hasgranted an aggregate amount of 2,575,000 stock options to officers,directors, employees, and consultants of the Company in accordancewith the provisions of the Company's stock option plan. The grant ofthe options is subject to the approval of the TSX Venture Exchange.Each option entitles the holder to purchase one common share of theCompany at an exercise price of $0.05 for a two-yearperiod.
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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