BARU GOLD Provides Update ON Financing and Announces Private Placement Offering
News Release
June 16, 2023 BARU: TSX.V | BARUF: OTCQB
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
BARU GOLD PROVIDES UPDATE ON FINANCING AND ANNOUNCES
PRIVATE PLACEMENT OFFERING
Vancouver, BC - Baru Gold Corp (the “Company” or “Baru”) wishes to advise the
shareholders that the financing announced in the May 1, 2023 news release is progressing
well.
The Company is currently in discussion with three potential investors or institutions for
the gold prepayment financing. One of the institutions is undertaking final due diligence
and the Company expects the process to conclude imminently. B oth parties are working
as expeditiously as possible to conclude the financing agreement.
The Company also announces a $100,000 non- brokered private placement consisting of
up to 3,333,333 units priced at $0.03 per unit for total proceeds of $100,000. Each unit
will comprise one common share in the capital of the C ompany and one transferable
common share purchase warrant. Each warrant will entitle the holder to purchase over
two years one additional share at an exercise price of $0.05 for the first year and $0.10
cents for the second year. The financing is expected to close on or before June 23, 2023.
The use of proceeds of the financing will be for working capital purposes while the
Company completes the due diligence on the USD $10 million financing.
Insiders of the Company participation in the foregoing offering constitutes a "related
party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions (“MI 61 -101”). Such participation is exempt
from the formal valuation and minority shareholder approval requirements of MI 61 -101
as neither the fair market value of the securities acquired by the insiders, nor the
consideration for the securities paid by such insiders, exceed 25% of the Company's
market capitalization.
The private placement is subject to regulatory approval, and all securities to be issued
pursuant to the financing are subject to a four -month hold period under applicable
Canadian securities laws. All funds are denominated in Canadian dollars. In connection
with the private placement, the company may pay finders' fees in cash or securities, or a
combination of both, as may be permitted by the policies of the exchange.
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
The securities being offered have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended, or state securities laws, and may not be
offered or sold within the United States or to, or for the account or benefit of, U.S.
persons absent U.S. federal and state registration or an applicable exemption from the
U.S. registration requirements.
ABOUT SANGIHE GOLD PROJECT
The Sangihe gold project 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 and105,000 inferred ounces of gold, as reported in the
company's "Independent Technical Report on the Mineral Resource Estimates of the
Binebase and Bawone Deposits, Sang ihe Project, North Sulawesi, Indonesia," dated 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- per-cent interest in the Sangihe mineral tenement contract of work
(CoW) is held through PT. Tambang Mas Sangihe (TMS). The remaining 30- per-cent
interest in TMS is held by th ree 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. The company has received approval for the upgrade of its licence
to advance the Sangihe project to construction and production.
Note: The company cautions readers that the any production decision made by the
company will not be based on a National Instrument 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 the Company's 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 saleable at a price that will cover the project's operating and
maintenance costs.
ABOUT BARU GOLD
Baru Gold is a dynamic junior gold developer with National Instrument 43- 101 gold
resources in Indonesia, one of the top 10 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, 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
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 histori cal 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 a nd
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 rat es, 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.