BARU Announces Amendment to Matured Convertible Loan and Issuance of Bonus Warrants
News Release
Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
July 16, 2026
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
BARU ANNOUNCES AMENDMENT TO MATURED CONVERTIBLE LOAN AND
ISSUANCE OF BONUS WARRANTS
Baru Gold Corp. (“ BARU” or the “ Company”) is pleased to announce that it has entered into a
forbearance agreement (the “ Agreement”) with Mercer Street Global Opportunity Fund, LLC
(“Mercer”), an arm’s length party to the Company, subject to acceptance by the TSX Venture
Exchange (the “Exchange”), in respect of the Company’s outstanding convertible loan originally
issued on July 15, 2022 (the “Loan”), which matured two years from its date of issuance, and is no
longer convertible into securities of the Company.
Under the terms of the Agreement, Mercer has agreed to forbear from enforcing repayment of the
Loan and from exercising its security rights until July 17, 2027 (the “Forbearance Date”). At the
Forbearance Date, all outstanding amounts under the Loan will become due and payable in full.
In consideration of the forbearance, and subject to Exchange approval, the Company will issue to
Mercer 6,528,879 non -transferable bonus warrants (the “Warrants”), each exercisable into one
common share of the Company at an exercise price of CDN$0.0675 (US$0.0489) for a term
expiring July 15, 2027. The Warrants are subject to pro rata reduction in accordance with Policy
5.1 of the Exchange.
The outstanding loan value is CDN $816,110 (US$591,384). The Warrants are calculated based on
a portion of the outstanding loan amount of CDN$440,699 (US$319,347). In addition, upon
issuance of the Warrants, the interest rate of the Loan will be reduced from 18.0% per annum to
16.67% per annum, subject to reinstatement of the penalty rate in the event the Loan remains
outstanding after the Forbearance Date.
Further, the Loan shall be rendered unsecured against the Company’s equity interest in its wholly
owned subsidiary, Sangihe Gold Corporation, which holds, through a wholly owned Indonesian
subsidiary, the Company’s interests in the Sangihe Gold Project. The Loan will remain unsecured
following the Forbearance Date. There are no finder’s fees payable. Completion of the transaction
remains subject to final acceptance of the Exchange.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“ Sangihe”) is located on the Indonesian island of Sangihe , off the
northern coast of Sulawesi with a gold bearing area of approximately 25,000 ha. Sangihe has an
existing National Instrument 43-101 report suitable for mining planning and production schedules
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
for an area within the 65-ha area targeted for initial production. Within the area targeted for initial
production, the National Instrument 43 -101 report estimates over 200,000 oz of gold resource
(Inferred: 91,000 and Indicated: 114,000), and over 3 million oz of silver resour ce (Inferred:
1,080,000 and Indicated: 1,930,000) as reported in 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 , February 1st, 2025). 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 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 agree ment 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.
On behalf of the Board of Directors
BARU GOLD CORP.
“Terry Filbert”
Terry Filbert
Chairman and Chief Executive Officer
604-684-2183
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
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 eng ineering,
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.