Vancouver, BC - Baru Gold Corp ("Baru" and its subsidiary PT. Tambang Mas Sangihe ("TMS") or the "Company") is happy to announce to stakeholders and investors the signing of an agreement with an Asian-based Investment and Banking Advisory Firm (the "Investment Firm") to assist with placing a USD 15 Million gold-prepayment agreement ("Gold Loan"). The financing to be covered by the Gold Loan is in the form of a loan that is non-dilutive to shareholders. The expected date of closing is in approximately 90 days. The Gold Loan is in addition to the Private Placement announced on January 4, 2023.
The Investment Firm is headquartered in Singapore with offices worldwide and is a leading finance provider to growing companies in Southeast Asia, the Middle East and Africa. The Investment Firm has a long and successful track record of investments in Indonesia. With worldwide capital networks, they have raised over USD 1.6 Billion and worked extensively on securing financing for various mining companies and companies that trade precious metals.
The terms of the engagement of the Investment Firm include the payment of: (i) a non-refundable commitment fee of US$7,500; (ii) a non-refundable milestone fee of US$10,000 payable upon acceptance and signing of any indicative term sheet or contract with the proposed lender; (iii) a 2.75% fee based on the prepayment amount and the loan principal payable upon the closing of the loan transaction; and a 2% commission on the sale value of any gold dore sold to any purchasing parties introduced by the Investment Firm to the Company.
The primary objective of the Gold Loan is to bring the Sangihe Project into production. Most of the funding will be used to expand land acquisition, construct more heap leach pads, build additional pits and other necessary production facilities, hire security, and obtain a Merrill Crowe Plant. A Merrill Crowe Plant will significantly improve the processing speed and recovery rates of gold, allow the extraction of silver and copper, and reduce the Company's environmental impact. Based on the metallurgical test results announced on April 11, 2022, with the utilization of a Merrill Crowe Plant, the Company expects gold recoveries of 85% and silver recoveries to reach approximately 96%.
The secondary objectives of the Gold Loan are to retire old debt and to expand the drilling and exploration program. The initial area targeted for this drilling program is covered in the Sangihe 2010 NI 43-101 report that identified 835,000 ounces of gold as an inferred resource between Binebase and Bawone villages over an approximately 1.2 kilometres of strike length. An infill drilling program will be conducted in this area to upgrade some inferred resources into indicated and measured resource status.
Thereafter, exploration drilling will continue over an additional 1.45 kilometres from Bawone to the South of Salurang and in other targeted regional areas. As announced on February 7, 2022, and February 14, 2022, The Murphy Geological Services Structural Survey identified 23 additional exploration targets and subsequent ground truth sampling at the Kingston Target revealed high-grade gold (14.60 g/t) and silver (13.60 g/t) assays. Most of the area within the Company's Contract of Work is unexplored and a priority of the Company is to identify new targets to expand production operations.
Mr. Terry Filbert, CEO of Baru Gold, commented, "I am thrilled with this new relationship. Not only will these funds be useful on Sangihe, but hopefully, we can continue to work together in the future. For Sangihe, this capital raise will be more than enough to bring us into production and allow us to explore across targeted areas within our Contract of Work. I believe the exploration program will quickly justify constructing additional heap leach pads and pits to expand production operations. With the increased material from the heap leach pads, the Merrill Crowe Plant is exactly what we will need to scale the operation. This capital injection will allow me to grow the project into the one I've long envisioned, while supporting the economic growth and development on Sangihe Island. With Sangihe in production, I can then focus on the vision for the Company that our investors and I share."
The Company appreciates the ongoing support it receives from the local residents of Sangihe, who are hoping for a better economy and safer environment, and the local government officials that are actively supporting their aspirations.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI, Chief Geologist of Baru is the Qualified Person as defined under the N1 43-101 who has reviewed and approved the contents of this release pertaining to the Sangihe Project held by the Company.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project ("Sangihe") is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi. Sangihe has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated and 105,000 inferred ounces of gold, as reported in the Company's "Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" (May 30, 2017). Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks
The Company's 70-percent interest in the Sangihe-mineral-tenement Contract of Work ("CoW") is held through PT. Tambang Mas Sangihe ("TMS"). The remaining 30-percent interest in TMS is held by three Indonesian corporations. The term of the Sangihe CoW agreement is 30 years upon commencement of the production phase of the project.
Baru has met all the requirements of the Indonesian government and has been granted its environmental permit.
ABOUT BARU GOLD CORP.
Baru Gold Corporation is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one of the top ten gold producing countries in the world. Based in Indonesia and North America, Baru's team boasts extensive experience in starting and operating small-scale gold assets.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI, Chief Geologist of Baru Gold Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
BARU GOLD CORP
Per: "Terry Filbert"
Terry Filbert, Director
President & CEO
For investor contacts more information, please contact:
647-725-3888 ext 702
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this News Release, which are not historical in nature, constitute "forward looking statements" within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company's performance or events as of the date hereof. These statements reflect management's current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance cost.