BARU GOLD Replaces Current Stage of Activity with New Production Operation Status FOR 25,000 Ha
News Release
September 11, 2023 Trading Symbol: “BARU: TSX.V | BARUF:
OTCQB”
BARU GOLD REPLACES CURRENT STAGE OF ACTIVITY WITH NEW PRODUCTION OPERATION
STATUS FOR 25,000 HA
Vancouver, BC - Baru Gold Corp (the “Company” or “Baru”) and its subsidiary PT. Tambang Mas
Sangihe (the "Company" or "TMS") is pleased to announce to shareholders they have completed
applying and submitting all necessary documents to request a new upgrade to Production Operation
Status to the Ministry of Energy and Mineral Resources of the Republic of Indonesia ("MEMR") for
25,000 ha . This Production Operation Status will replace the Company’s current Production
Operation Activity Status. The application process started on July 14, 2023, and concluded on
September 11, 2023.
MEMR informed the Company their current Production Operation Activity Status must be revoked
before they could issue a new Decree from the Minister authorizing an upgrade to Production
Operation Status. The Company agreed and recently requested the MEMR issue this revocation. The
cancellation of this Activity Stage relates only to an administrative process within the Company’s
Contract of Work (CoW). The Company’s CoW and all permits are valid and are not affected by
this administrative step.
On January 17, 2023, the Company announced the results of a challenge filed in an Administrative
Court against the MEMR’s Decree of the Minister that increased the Stage of Activity to Production
Operation Status (the "Jakarta Lawsuit") . As announced on May 29, 2023, following MEMR's
review of the Jakarta Lawsuit, the Ministry confirmed the Company had fulfilled all necessary
requirements of the CoW for Production Operation Status and was legally allowed to operate and
produce gold. The MEMR is the Republic of Indonesia's sole designated representative and has the
final authority in overseeing, administrating, and authorizing the Company's actions according to
the CoW.
MEMR's desire to see the Company in production remains unchanged. However, the Company has
decided the best action and long-term solution is to obtain a new Decree from the Minister of MEMR
granting the Stage of Activity to Production Operation Status. A final step in applying for a new
Production Operation Status is requesting the cancellation of the current Production Operation
Status.
Baru Gold Corp
ration
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
For the last several months, the Company has held many meetings with the MEMR to confirm and
meet the requirements and conditions for a new Stage of Activity upgrade to Production Operation
Status. The Company has met with the Directorate General of Minerals and Coal, namely the
• Director General of Mineral and Coal
• Secretary General of Mineral and Coal
• Coordinator of Mineral and Coal Law
• Legal Bureau Staff of the Ministry of Energy and Mineral Resources
• Director of Coal Mineral Business Development
• Coordinator of Mineral Commercial Relations
• Coordinator of Business Services, and
• Coordinator of Supervision of Mineral Production and Marketing Operations.
On August 24, 2023, the MEMR formally accepted a summary of the conclusions reached with the
Company to issue a new Decree granting the Stage of Activity upgrade to Production Operation
Status. To avoid any confusion, the Company also supplied the North Sulawesi Regional Police with
a copy of the correspondence. For shareholder awareness, the Company will summarize the planned
and agreed procedures set out within the correspondence.
In the correspondence, the parties agreed the first step was to annul the current Stage of Activity
Production Operation Approval No. 163.K/MB.04/DJB/2021. This cancellation brings the MEMR
into full compliance with the ruling from the Jakarta Lawsuit and has no impact on the Company’s
CoW or permits . With the Minister’s Decree cancelled, the MEMR will be able to issue a new
decree to Production Operation Status. The MEMR must first cancel a decree before issuing a new
one. This cancellation has already ha ppened and was released late afternoon on Friday , September
8, 2023. On Monday, September 11, 2023, the Company filed with the MEMR a new request for an
upgrade to Production Operation Status with all required documentation and conditions met . The
key difference between the original and new request is the size of the operational area.
The new application reduces the area of operations from 42,000 ha to 25,000 ha. The excluded areas
are specifically mentioned in the Jakarta Lawsuit and include protected forested area, shoreline, or
urban areas. These areas were always outside of the Company's original work plan and are not gold-
bearing. This new reduced area only includes the gold -bearing area on Sangihe Island, where the
Company always intended to base its operations. For the Company , there are several financial
benefits and no negative consequences in reducing the area covered by the request for Production
Operation Status. For MEMR, the area reduction allows them to comply with the decision o f the
Jakarta Lawsuit and greatly simplifies the Stage of Activity Upgrade approval.
As all requirements by the MEMR are met in the new application, Indonesian law guarantees the
Stage of Activity upgrade to Production Operation Status. The upgrade is an administrative step
protected by the Company's CoW. As the Jakarta Lawsuit reached the Supreme Court, there cannot
be additional lawsuits on the same issue.
To reiterate, the Company initiated the request to the MEMR to cancel the current Stage of Activity
Upgrade Status so it could obtain a new one . The cancellation has no impact on the Company's
permits or CoW, which are all valid and remain in good standing. The cancellation will bring the
MEMR into compliance with the Jakarta Lawsuit. The area reduction avoids environmental ly
sensitive areas on Sangihe Island, are non -gold bearing and were always outside the Company’s
planned area of operations.
Mr. Terry Filbert, CEO of Baru Gold, commented, "I am very pleased with the continued support
and cooperation from the MEMR. We are now in the final stages of approval for our new Stage of
Activity upgrade to Production Operation Status. I can understand the alarm that a shareholder
might experience when they discover that our current Decree from the Minister has been cancelled.
However, I would urge shareholders to view this action as a necessary final step in obtaining a new
Stage of Activity Upgrade to Production Operation Status . We have been workin g hard on a new
application for months and were fully aware of the cancellation. This cancellation is all part of the
plan previously agreed to by MEMR. We have always been legally able to operate but I believe this
is a better long-term solution.”
The Company reminds shareholders that a social media disinformation campaign by illegal miners
and their supporters will likely begin after the news of the cancellation of the Minister's Decree
becomes public. Typically, these individuals falsely assert the Company's permits are revoked ,
cancelled, cannot operate or similar. These malicious actors will probably repeat their propaganda
again to attempt to harm shareholders or the Company’s reputation . Concerned shareholders are
urged to reach out to the Company for correct information.
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 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 three 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.
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 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 ar e 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. Th ose 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.