BARU GOLD Signs Letter of Intent with PT Arsari Tambang and Hashim Djojohadikusumo to Be Appointed President Commissioner of PT Tms
News Release
November 18, 2024 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
BARU GOLD SIGNS LETTER OF INTENT WITH PT ARSARI TAMBANG
AND HASHIM DJOJOHADIKUSUMO TO BE APPOINTED PRESIDENT COMMISSIONER
OF PT TMS
Vancouver, BC - Baru Gold Corp (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 o f Intent with PT Arsari Tamban g 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 ex plores, 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 ar e in excess of 4,700 tons (app r o x i m a t e s a l e s v a l u e U S D $ 1 4 8
million).
PT Arsari Tambang prides itself on responsible management, stro ng 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 corpor ation. The private corporation is
and will remain an existing shareholder of PT TMS. Baru’s 70% s h a r e i n P T T M S r e m a i n s
unchanged and this 10% stake is non-dilutive to Baru shareholders.
PT TMS will grant to PT Arsari Tambang a 5-year Option to subsc ribe for additional 15% equity
stake in PT TMS. The Option is exercisable until the fifth anni versary date from the date the
Company receives approval for a Production Operation Status fro m the Indonesian Ministry of
Energy and Mineral Resources. The option price is based on the valuation of PT TMS at the time of
Baru Gold Corp
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
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 esti mates 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 exercis e d , B a r u ’ s s t a k e i n P T T M S w ill reduce from 70% to 59.5%.
Although slightly dilutive to shareholders, Baru Gold will cont inue to hold more than 50% of PT
TMS and the funds from the invest ment will be used as working c apital 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 i n 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 shareholde rs will benefit fr om 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 a nd the Indonesian Ministry of E nergy 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 Indonesi an island of Sangihe, off the
northern coast of Sulawesi. Sangihe has two existing National I nstrument 43-101 reports with over
1 million oz of gold resource identified (inferred mineral reso urce of 1,022,987 and 114,700
indicated ounces of gold), as re ported in the Company's “Indepe ndent Technical Report: Sangihe
Property” (Caracle Creek International Consulting Inc, Septembe r 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-teneme nt 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 a greement 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 dyna mic junior gold developer with N I 43-101 gold resources in
Indonesia, one of the top ten gol d producing countries in the w orld. Based in Indonesia and North
America, Baru’s team boasts extensive experience in starting and operating small-scale gold assets.
Frank Rocca, BAppSc.(Geology), MA usIMM, MAIG, CPI-KCMI, Chief G eologist 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
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 hi storical 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 statemen ts. Those risks include the interpretation of drill results;
the geology, grade and continuity of mineral deposits; the possibility that future explor ation, 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 fa ctors, 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.