BARU GOLD GRANTS RESTRICTED SHARE UNITS AND SHARE OPTIONS
Baru Gold Corp. has granted an aggregate 4,946,993 restricted share units to Terry Filbert, chief executive officer of the company, in accordance with the provisions of the company's restricted share unit plan.
The grant of the RSUs is subject to the approval of the TSX Venture Exchange. The RSUs entitle the holder to: (i) a lump sum payment in cash equal to the number of vested RSUs recorded in the holder's account; or (ii) the number of common shares required to be issued to a holder upon the vesting of such holder's RSUs (on the basis of one common share for each vested RSU).
The company has granted an aggregate amount of 8,825,326 stock options to directors, employees and consultants of the company in accordance with the provisions of the company's stock option plan, subject to the approval of the TSX-V. Each option entitles the holder to purchase one common share of the company at an exercise price of five cents for a two-year period expiring May 3, 2026.
Insiders of the company participation in the foregoing grant of securities constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders nor the consideration for the securities paid by such insiders exceeds 25 per cent of the company's market capitalization.
About the Sangihe gold project
The Sangihe gold project 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 National Instrument 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-per-cent interest in the Sangihe mineral tenement contract of work (CoW) is held through PT Tambang Mas Sangihe (TMS). The remaining 30-per-cent 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 is a dynamic junior gold developer with NI 43-101 gold resources in Indonesia, one of the top 10 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.