BARU GOLD Signs MOU FOR Production Operation Plus $6 Million Cash
News Release
August 3, 2023 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
BARU GOLD SIGNS MOU FOR PRODUCTION OPERATION PLUS $6 MILLION CASH
Vancouver, BC - Baru Gold Corp (“Baru” and its subsidiary PT. T ambang Mas Sangihe (“TMS”)
or the “Company”) wishes to inform stakeholders and investors o n the signing of a Memorandum
of Understanding (MoU) that includes both financial and operati onal terms with mine contractor
CV. Mahamu Hebat Sejahtera (the “Contractor”). The Contractor i s a resident of Sangihe Island
with previous mining experience.
The terms of the MoU state that the Contractor will pay the Company approximately CAD $6 million
over three months. In exchange, the Company grants the right to the Contractor to operate and
produce gold for 5 years on 65 of the 42,000 ha within the Company’s Contract of Work area.
On receipt of funds, the Company will license to the Contractor , a previously operating gold mine.
The Contractor will manage and expand this operation, and fund all additional costs related to
staffing, land acquisition, construction of the mining pit, hea p leach pads, and reclamation. As the
operations were previously produ cing gold, the time necessary t o produce cash flow will be
shortened considerably.
Under the terms of the MoU, the Contractor will receive 65% of the total gold recovered, and the
Company will retain 35%.
This agreement does not prevent the Company from opening additi onal worksites within the
Contract of Work area. The Compa ny retains control of the Sangi he Project and will oversee and
supervise all operations led by the Contractor. The Contractor must abide by the same environmental
and reclamation standards required of the Company by Indonesian law.
The Company and Contractor are currently negotiating terms of the operating agreement, which may
be subject to mutually agreed to changes from the MoU. The curr ent negotiations have been
productive, and the parties look forward to a conclusion being reached. All due diligence, by both
parties, has been completed.
As this transaction involves no equity in the Company, the fina ncial agreement is nondilutive to
shareholders and the funds do not need to be repaid. There will be no administrative fees or
commissions.
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
Mr. Terry Filbert, CEO of Baru Gold, commented, “I am thrilled at this opportunity with a household
name on Sangihe. The contracting company is run by a family that have deep and lasting
relationships on Sangihe. They have lived on the Sangi he for generations and are motivated to not
only protect but improve the Isl and. The family are long-time and active participants in local
community and political life, and have years of mi ning experience. In addition to providing the
operational support and suffic ient capital we require to be almo st immediately in cash flow, this
agreement is further evidence of our commitment to the people of Sangihe.”
The Company is fully permitted and legally entitled to operate and produce gold on Sangihe Island.
We are committed to doing so in safe manner following environmental regulations outlined in our
Environmental Permit.
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 an existing National In strument 43-101 inferred mineral
resource of 114,700 indicated and 105,000 inferred ounces of go ld, 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 benefi t of first establishing mineral
reserves supported by a feasib ility 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 te chnical 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 three 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 requireme nts 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.
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 ar e 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 thos e 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 expecta tions; 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 mi ning exploration risks
and production and economic risks related to design and engineering, manufacturing,
technological processes and test procedures and th e 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 investme nt advice. Readers should perform a detailed,
independent investigation and analysis of the Com pany 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.