Vancouver, BC – Baru Gold Corp (the “Company” or “Baru”) wishes to provide an update on the appeal of a lawsuit filed in Makassar, Indonesia (the “Makassar Lawsuit”) against two government departments responsible for the issuance of the Environmental Permit (“AMDAL”) to Baru’s subsidiary, PT Tambang Mas Sangihe (“TMS”).
The Makassar Lawsuit was filed in October 2021 against the North Sulawesi Province Government Head of Investment and One Stop Integrated Services of North Sulawesi and Head of Environmental Department of North Sulawesi pertaining to the issuance of the AMDAL to TMS in 2020. While TMS was not named in the Makassar Lawsuit, the court granted permission for a representative of TMS to attend the proceedings in support of the government departments. In June 2022, judgement was issued in favor of the plaintiff (see news release dated June 28, 2022). In response, the ruling was appealed and on September 7, 2022, TMS was successful in having the June ruling overturned.
Update on the Ministry of Energy and Mineral Resources Lawsuit
In a news release dated September 6, 2022, the Company provided an update on a lawsuit filed in Jakarta, Indonesia in June 2021 (the “Jakarta Lawsuit”), against the Ministry of Energy and Mineral Resources (the “MEMR”), the government department responsible for issuing the operational mining permit to TMS. While TMS was not named in the Jakarta Lawsuit, the court granted permission for a representative of TMS to attend the proceedings in support of MEMR.
In April 2022, the Jakarta Lawsuit was dismissed. The decision was appealed and on September 6, 2022, the appeal was successful and the April ruling was overturned.
It is the Company’s position that the court made its September ruling in the Jakarta Lawsuit based on the June 2022 ruling in the Makassar Lawsuit. As the June ruling in the Makassar Lawsuit was subsequently overturned, the MEMR and TMS have jointly filed an appeal of the Jakarta Lawsuit to the highest court in Indonesia.
Terry Filbert, CEO of Baru Gold, commented “The Company notes that the Makassar decision came only a few days after the Jakarta decision. TMS appears to have been unsuccessful in its appeal of the Jakarta lawsuit based on the June 2022 Makassar ruling which has now been overturned. I would like to reiterate that TMS continues to hold a valid Contract of Work (“CoW”) with the Indonesian government which remains unaffected by any of these court decisions. The CoW permits TMS to explore our licenced area. The Company can and will proceed with the planned resource development program of infill drilling to upgrade some of the inferred resources into indicated and measured resource status.”
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'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.
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.
ABOUT BARU GOLD CORPORATION
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 of mining and finance professionals boasts extensive experience in starting and operating small-scale gold and coal assets. With strong retail and institutional shareholder support, Baru is positioned to become Indonesia’s next gold producer.
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 CORPORATION
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
info@barugold.com
+1-206-890-8285
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.