Baru Gold Signs Letter of Intent with PT Arsari Tambang and Hashim Djojohadikusumo to be Appointed President Commissioner of PT TMS
Vancouver, November 18, 2024 - Baru Gold Corp. (TSX.V:BARU | OTCQB: BARUF) (the "Company" or "Baru") and its subsidiary PT. Tambang Mas Sangihe (the "Company" or "PT TMS") are thrilled to announce to shareholders that the Company has signed a non-binding Letter of Intent with PT Arsari Tambang to become a Strategic Equity Partner and Investor. Background of PT Arsari Tambang:
PT Arsari Tambang is a wholly owned subsidiary of Arsari Group. Arsari Group is an Indonesian conglomerate with operations in renewable energy, agribusiness, mining, trading and logistics.
PT Arsari Tambang is a leading fully integrated tin mining and processing company. Through its subsidiaries operating in Bangka Belitung, PT Arsari Tambang explores, exploits, mines, process, smelts, refines, sells and exports tin. PT Arsari Tambang's tin smelter has a production capacity of 1,200 tons/month and its branded tin ingots are listed on the London Metals Exchange. Year to date export earnings from tin metal are in excess of 4,700 tons (approximate sales value USD $148 million).
PT Arsari Tambang prides itself on responsible management, strong community engagement and development. All aspects of their operations are certified in accordance with the highest standards.
Partnership and Investment Agreement:
Subject to satisfactory due diligence, PT Arsari Tambang will acquire a 10% equity stake in PT TMS from PT TMS's existing shareholder, a private Indonesian corporation. The private corporation is and will remain an existing shareholder of PT TMS. Baru's 70% share in PT TMS remains unchanged and this 10% stake is non-dilutive to Baru shareholders.
PT TMS will grant to PT Arsari Tambang a 5-year Option to subscribe for additional 15% equity stake in PT TMS. The Option is exercisable until the fifth anniversary date from the date the Company receives approval for a Production Operation Status from the Indonesian Ministry of Energy and Mineral Resources. The option price is based on the valuation of PT TMS at the time of the exercise. The valuation of PT TMS will be determined by a TSXV approved business and natural resource valuator. This estimate will be based on resource estimates from the Company's two Sangihe NI43-101 Reports from 2010 and 2017, and other geological evidence as may be required.
If the 15% Option is fully exercised, Baru's stake in PT TMS will reduce from 70% to 59.5%. Although slightly dilutive to shareholders, Baru Gold will continue to hold more than 50% of PT TMS and the funds from the investment will be used as working capital to expand operations and accelerate value for shareholders.
Company management expects the collaboration with PT Arsari Tambang to be transformative and one that will bring enormous benefit to shareholders.
The goal of this partnership is to enable the Company to obtain the necessary resources and expertise to commence production, further assist in obtaining funding to start its gold production and support the exploration drilling necessary to identify all available resources on Sangihe Island.
Leadership:
The Company is honoured to announce that Hashim Djojohadikusumo will join the Board of PT TMS as President Commissioner. Hashim is the founder and Chairman of Arsari Group.
Hashim is an entrepreneur with a long track record of success in International and Indonesian markets. Hashim has distinguished himself as a philanthropist, in environmental conservation, and in Indonesian cultural heritage preservation. Hashim's ecologically focussed initiatives include the backing of programs to save the orangutan and honey bears of Kalimantan (Borneo) and improving the welfare of the wild elephant population of Sumatra. Hashim also has deep familial ties in North Sulawesi, where Sangihe Island is located.
Mr. Terry Filbert, CEO of Baru Gold, commented, "I'm incredibly excited about our new partnership with PT Arsari Tambang and honoured to have Hashim as President Commissioner on the Board of PT TMS -- all shareholders will benefit from the support of PT Arsari Tambang and Hashim's expansive knowledge and experience. It's a wonderful collaboration. I would personally like to thank the staff and legal teams of both Baru Gold and those of PT Arsari Tambang for their hard work bringing this transaction to a close."
The Company reminds shareholders that this Letter of Intent is subject to a shareholder vote and regulatory review by both TSXV and the Indonesian Ministry of Energy and Mineral Resources. The Transaction is subject to parties entering into agreed documentation.
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.
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