CEO and Chairman of BARU GOLD Provides Update, Year-End Review & Outlook FOR 2025
News Release
December 20, 2024 Trading Symbol: “BARU: TSX.V | BARUF: OTCQB”
CEO AND CHAIRMAN OF BARU GOLD PROVIDES UPDATE, YEAR-END
REVIEW & OUTLOOK FOR 2025
Vancouver, BC - Terry Filbert, CEO and Chairman of Baru Gold Corp (the “Company” or
“Baru”) and President Director of its subsidiary PT. Tambang Mas Sangihe ("PT TMS"), is
happy to provide an update to shareholders, a year-end review, and the outlook for 2025.
I would personally like to thank our investors for their support over the last 12 months. The
past year has seen the Company achieve several of its long-standing goals and lay the
foundation for a transformative next 12 months. I am obviously very pleased that the impact
of our efforts is reflected in the recent share price appreciation. I believe that our continuing
successes will only favorably impact the Company’s market value. Now, I would like to review
and update you on our progress and discuss my outlook for 2025.
The Production Operation Status Upgrade
Recently, the Ministry of Energy and Mineral Resources (ESDM) has contacted the Company
to update us on our application for Production Operation Approval. Prior to processing the
application, the ESDM has asked the Company to pay taxes and update certain documents.
The document changes or updates are not substantial, and requests include updated satellite
imagery of the Contract of Work area, the Company’s latest Activity Report, and to fix a
typographical error in some geographical coordinates. Once we have updated the
documentation, the ESDM has asked the Company to resubmit the application directly to the
Directorate General of Mineral and Coal.
I hope to have our Production Operation Status approved in early 2025. The upgrade to
Production Operation Status is guaranteed by Indonesian law through our Contract of Work.
Once we obtain our Production Operation Status, the Company will move very quickly into
actual production. Our first gold pour will happen soon after we become operational. As such,
I have already started identifying and recruiting individuals to hire in key operational roles.
On January 1, 2025, our new Chief Operating Officer will begin his employment at the
Company. He will oversee and be responsible for the mining operations on Sangihe. An
extremely experienced Indonesian metallurgist, he has worked in or led several of the major
gold mining projects in Indonesia. He has already made significant improvements to our
mining plan.
Baru Gold Corp
Baru Gold Corporation
9th Floor 1021 West Hastings St
Vancouver, BC V6C 1L6
www.barugold.com
In 2025, I anticipate significant hiring activity. With our production plans, the Company will
easily become the largest employer on Sangihe Island. As part of our commitment to the local
communities, Sangihe residents will be favoured for positions with the Company. Further, we
will support all entrepreneurial activities from residents that support our workers and
operations.
Raising Financing
The rising price of gold and improved investment environment in Indonesia has attracted
considerable unsolicited investment interest in the Company. I am happy to say that the volume
of interest was beyond the capacity of current management. As was announced on November
21, 2024, we have retained a specialist advisory firm to assist in the raising of capital.
The Company continues to receive inbound investment interest. In addition, the advisory firm
is in the process of reaching out to their expansive list of its institutional connections to expand
the potential investor pool. The greater the investment interest the greater the opportunity for
shareholders. Although open to all competitive funding proposals, we are targeting, and prefer,
a financing that is non-dilutive to shareholders.
To support and expedite the process, we have already prepared the materials investors will need
for their due diligence. We have already held one site visit to Sangihe Island for investors, and
we anticipate significantly more activity early in 2025.
A Strategic Partner: PT Arsari Tambang
The Company is working hard to complete and close the partnership with PT Arsari Tambang
that was announced on November 19, 2024.
The Company is hopeful that the transaction is closed and approved during the first quarter of
2025. I understand and sympathise with investor impatience wishing to see this opportunity
close quickly. However, the transaction requires approval from two different regulators based
in different countries, and there are significant bureaucratic processes and administrative
procedures to follow.
All of the involved parties are working on closing the opportunity and are in regular contact.
In 2025, a final step of this transaction will be a shareholder vote. When appropriate, the
Company will call an Extraordinary General Meeting. At the meeting, shareholders can vote
to express their opinion on the planned partnership. The vote is separate from the upcoming
Annual General Meeting.
Improved Balance Sheet
I am very happy to announce that we have successfully negotiated with several of our vendors
to reduce our outstanding financial obligations. We have reduced the total obligations
significantly. In 2025, the Company plans to negotiate further to reduce other financial
obligations.
I would like to advise shareholders that the start of our audit in 2024 was delayed. Although
the audit is now underway, the Company will almost certainly miss the filing deadline for our
audit required by the regulatory bodies, and therefore we will file for a Management Cease
Trade Order (MCTO). Until the audit is complete and MCTO lifted, management and
employees of the Company cannot trade shares in the Company. The MCTO will not prevent
anyone else from trading shares in the Company.
Unlicensed and Illegal Mining on Sangihe Island
The hurdles faced by the Company in the past have principally originated from the illegal and
unlicensed miners protesting the presence of a legal and licensed miner.
Since February 2024, all significant unlicensed mining on Sangihe Island has stopped. There
have been isolated incidents of small operations re-starting and the Indonesian Police have
quickly intervened and ended the activity. Illegal mining activity is at an extremely low level
on Sangihe Island, and enforcement has never been so persistent and effective. Enforcement
has been similarly throughout the wider region.
Under Indonesian law, those convicted of mining without a permit may be jailed for up to five
years and fined up to 100 billion rupiah (CAD $9 million). The police have already imprisoned
some illegal miners that were operating on Sangihe, and the Company is aware of several on-
going investigations.
The illegal miners have caused extensive environmental damage, undertaken no remediation,
diverted the taxes owed to the Indonesian government, and have not supported the broader
Sangihe community. The illegal miners have taken much of their gold from shoreline locations
and have used mercury in their operations, both adversely impacting the environment, and in
direct violation of Indonesian mining and environmental laws.
Going forward into 2025, I believe the dismantling of the illegal mining network will
dramatically improve the Company’s opportunity growth while will also improving the quality
of life in the communities on Sangihe Island. The Company pays taxes, ensures it operations
respect the environment and follows Indonesian mining rules and regulations. The Company
has developed and is proud to have a plan to actively support local residents and communities
through our outreach, engagement and social programs.
With the end of 2024 fast approaching, I thank again and wish all our shareholders a happy and
healthy break. I am looking forward to a busy and fruitful 2025.
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 two existing National Instrument 43-101 reports with
over 1 million oz of gold resource identified (inferred mineral resource of 1,022,987 and
114,700 indicated ounces of gold), as reported in the Company's “Independent Technical
Report: Sangihe Property” (Caracle Creek International Consulting Inc, September 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-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
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.
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.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, CPI-KCMI, Chief Geologist 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 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 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.