November 21, 2024 – TheNewswire - Vancouver, BC - Baru Gold Corp ( TSX.V:BARU | OTCQB:BARUF ) (the “Company” or “Baru”) and its subsidiary PT. Tambang Mas Sangihe (the “Company” or “PT TMS”) wish to inform shareholders of noteworthy progress in obtaining funding for production operations. Institutional and corporate investment interest has increased following the rising and sustained high price of gold.
The Company has recently received several unsolicited inquires from investors seeking to invest in the gold sector in Indonesia, including from coal companies seeking to diversify after a period of record profits. The increased pace of inbound interest from potential investors convinced the Company to seek external expertise to identify the best opportunity, and to negotiate a successful outcome.
On the recommendation of an individual connected to one of the recently announced Letters of Intent for Investment, the Company has retained a specialist advisory firm (“Merchant Bank”) to lead the effort to raise the funds for production operations. With professionals located in Hong Kong, Jakarta, Perth and Singapore, the Merchant Bank specializes in strategic advice and fundraising services for clients in the metals and mining sector in Asia and Australia. The Merchant Bank’s leadership team has collectively closed mining & metals financing and M&A transactions with a value of over US$ 8 billion, including some of the largest deals ever completed in Indonesia’s gold and coal mining sectors.
The Merchant Bank will introduce the opportunity to their investor contacts, coordinate inbound interest, lead negotiations, support due diligence, and help structure any final deal.
The Merchant Bank’s Founder & CEO will be responsible for this transaction on a day-to-day basis. He started his career in Morgan Stanley’s Mergers & Acquisitions division. Immediately prior to establishing the Merchant Bank, he was, for many years, Managing Director and Head of Asian Natural Resources for one of the world’s largest money center commercial and investment banks. His firm is staffed with similarly accomplished professionals.
The terms of the engagement of the Investment Firm are typical for assignments of this nature prevailing internationally and include a success fee that provides a strong incentive for the Merchant Bank to achieve the highest value for the Company.
Given the advanced state of negotiations with PT Arsari Tambang, the terms in their Letter of Intent announced on November 18th, 2024 will continue to their conclusion as planned and are outside the Merchant Bank’s scope of work.
Mr. Terry Filbert, President Director of PT TMS, commented, " I feel that Sangihe is one of the best undeveloped gold assets in Indonesia, and it is secured by a Contract of Works – the “Gold Standard” of mining licenses! We are open to all competitive funding offers but would prefer financing that is non-dilutive to shareholders. Once in production, our cash flow will very quickly rise and exceed costs. It should not take long to pay off any outstanding liabilities. Projected production costs are low and rising gold prices will only improve profit margins.”
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 two existing National Instrument 43-101 reports with over 1 million oz of gold resource identified (inferred mineral resource of 1,022,987 and 114,700 indicated ounces of gold), as reported in the Company's “Independent Technical Report: Sangihe Property” (Caracle Creek International Consulting Inc, September 22nd, 2010) and “Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” (Mining Associates Pty Ltd, 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 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 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
info@barugold.com
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
kevin@jeminicapital.com
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.