BARU GOLD HITS KEY MILESTONE, ENTERS INTO EXCLUSIVE NEGOTIATIONS FOR FUNDING OF UP TO USD$100,000,000
Baru Gold Corp. has made significant progress in securing the up-to-$100-million (U.S.) financing agreement announced on May 15, 2025, with Quantum Metal Thailand Co. Ltd.
Baru and QMT are negotiating exclusively with each other over the financing of the Sangihe gold project, and are not engaging third party offers for similar arrangements.
This milestone was reached following the successful completion of a key financing milestone: Baru raising $1-million (Canadian) in a private placement. This milestone marks a significant step in advancing the strategic partnership with QMT and bringing the company's Sangihe gold project into production operations. The $1-million (Canadian) financing milestone was a prerequisite required by Baru management in advance of definitive agreement negotiations to ensure it would only occur during a period when the company was well capitalized. The intention of this period of exclusivity is to enable both parties to focus on the definitive agreement and accelerate the closing of the up-to-$100-million (U.S.) in financing that aligns with its strategy of securing long-term value for shareholders.
Baru and QMT are still in a period of due diligence and negotiations on the terms of the definitive agreement. QMT and Baru have held several rounds of productive negotiations and continue to undertake due diligence. Shareholders will be notified following the attainment of significant milestones.
All parties are working collaboratively to finalize terms and are in regular consultations. As previously reported, the definitive agreement is to be executed within a 60-day period following the satisfactory due diligence review of the company's financials, operations, permits and production capacities by QMT. To accelerate the closing of this financing, the definitive agreement is being negotiated while the due diligence is under review.
The proposed financing would support near-term development, resource expansion and all construction activities for the Sangihe gold project. The company believes this transaction, once finalized, will not only secure long-term capital for advancement of the Sangihe gold project, but unlock meaningful value for shareholders.
"This is the kind of strategic momentum we've been building toward," said chief executive officer Terrence Filbert. "We are confident that, with QMT, we can accelerate development at Sangihe and deliver on our vision of becoming Indonesia's next gold producer. This partnership is a major step forward, and our shareholders should be encouraged by the strength of our progress and the opportunities ahead. This is a transformational moment for Baru."
About Sangihe gold project
The Sangihe gold project is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi, with a gold-bearing area of approximately 25,000 hectares. Sangihe has an existing National Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-hectare area targeted for initial production. See the company's "Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" (Mining Associates Pty. Ltd., Feb. 1, 2025). Only 10 per cent of the gold-bearing area has been explored.
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 is held through Pt Tambang Mas Sangihe. The remaining 30-per-cent interest in TMS is held by other 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.