Vancouver, BC – Baru Gold Corp (“Baru Gold” or the “Company”) wishes to provide an update to stakeholders and investors on the recent COVID-19 situation in Indonesia, its impact on operations, and updates on the Sangihe gold project.
As of July 12th, 2021, Indonesia has reported more than 2.5 million cases overall with daily coronavirus infections ramping up to 50,000 cases. Compared to the winter peak of 11,000 new cases per day in January of 2021, the Delta and Lambda variants are significantly impacting the spread of COVID-19 in Indonesia.
The Indonesian government has implemented regulations, including Emergency Restricted Movements (PPKM Darurat), in many parts of the country, allowing travel for essential purposes only. Islands beyond Java and Bali, the epicenter of the current outbreak, such as Sangihe Island, are now under travel bans and emergency restrictions from 3 July to 20 July 2021. Additionally, many companies and service industries have been temporarily closed in a bid to stem the spread of COVID-19.
UPDATE ON SANGIHE PROJECT
The government response to the COVID-19 emergency is dynamic, changes daily, and is impacting the Company’s operations. The team continues to make progress, however, Sanghie Island has not been spared from the increase in cases of COVID-19, and this has resulted in delays due to some of our stakeholders becoming infected and their need to recover in isolation.
The Company is actively addressing COVID-19 protocols to keep staff and contractors safe, including working remotely where possible, wearing masks, and ensuring the team is on the priority list for their second vaccinations. Conservatively, the Company expects travel and medical delays to the end of this month. The Company will provide further updates as information becomes available.
In light of the anticipated delays due to the spread of COVID-19, Baru Gold announces that, subject to acceptance by the TSX Venture Exchange, the Company wishes to:
Amend the exercise term of 3,928,000 outstanding common share purchase warrants (the “June 2019 Warrants”) of the Company. The Warrants were originally issued on June 17, 2019. The exercise term of the share purchase warrants has been amended from July 17, 2021, to October 17, 2021.
The shareholders of the Company voted in favour of all items of business brought before them at the Company's Annual General Meeting (the "AGM") that was held on July 9, 2021, in Vancouver, BC, Canada. At the AGM, shareholders voted in favour of all nominations to the Board of Directors (the "Board"), with Terry Filbert, Scott Chaykin, Garry Kielenstyn, John Ellis, and Joseph Keane each re-elected to the Board. Shareholders also re-appointed Davidson & Company LLP, Chartered Accountants, as the auditor of the Company, and that the number of directors elected be fixed at five (5).
APPOINTMENT OF CORPORATE SECRETARY
Baru Gold is pleased to announce the appointment of Ms. Bernice Wong to the Corporate Secretary position effective July 9, 2021.
GRANT OF STOCK OPTIONS
The Company announces that it has granted an aggregate amount of 1,170,750 stock options to officers, directors, employees, and consultants of the Company in accordance with the provisions of the Company's stock option plan. The grant of the options is subject to the approval of the TSX Venture Exchange. Each option entitles the holder to purchase one common share of the Company at an exercise price of $0.07 for a five-year period.
ABOUT SANGIHE GOLD PROJECT
The Sangihe gold-silver project is located on the island of Sangihe off the northern coast of Sulawesi and 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" dated May 30, 2017. Only 10% 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'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 for 30 years upon commencement of the production phase of the project.
ABOUT BARU GOLD CORP.
Baru Gold Corporation (formerly East Asia Minerals) is positioning itself to become Indonesia’s new gold producer. We are a dynamic junior gold developer with NI43-101 gold resources in Indonesia, one of the top ten gold producer countries in the world. In 2020, Baru Gold received approval on the environmental permit and became compliant on all government requirements for the Sangihe Gold Project. Baru has received the approval for the upgrade of its licence to advance the project to construction and production in 2021.
Currently, Baru is awaiting final land acquisition to conclude so construction of the heap leach can proceed with production expected to commence in 2021. 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 such as 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 costs.
Our team of mining and finance professionals are based both in North America and locally in Indonesia and boast extensive experience in starting and operating small-scale gold and coal assets. With sufficient funds and strong retail and institutional shareholders support, Baru Gold is well positioned to take advantage of the increased interest in gold and precious metals with both exploration upsides and operation cashflow in 2021.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, 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 CORPORATION
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 costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.