BARU GOLD Confirms Land Ownership of Sangihe Island Gold Mine Project Labor Contract and Provides Information on TMS Lawsuit
August 25, 2022 – TheNewswire – Baru Gold Corp. (TSXV:BARU) (OTC:BARUF) (“baru“or the”Company”) wishes to assert its ownership rights to the Sangihe Gold Project in response to recent media reports of the Indonesian government revoking mining permits in the country and provides information on a lawsuit recently filed in Indonesia by the company’s subsidiary PT Tambang Mas Sangihe (“TMS”).
TMS Proprietary Rights
Indonesian Investment Minister Bahlil Lahadalia recently announced that the Ministry of Investment (the “Ministry”) has revoked 2,065 permits covering more than 3.1 million hectares (7.66 million acres). ) of land across the country to strengthen sector governance and land redistribution. This follows Indonesian President Joko Widodo’s decree in January 2022 ordering the revocation of thousands of mining, plantation and forest use permits due to non-compliance or inactivity. The actions taken by the ministry have no impact on Baru or its operations.
Baru’s permits and licenses have not been revoked and remain valid. Baru is compliant in all respects with the AMDAL (environmental) assessment and the Indonesian feasibility study. More recently, the Company obtained its exploitation and export license for the mining site.
The Company continues to conduct day-to-day operations at the site and on the island. The Company continues to create jobs by hiring locals to fill these positions. Construction is underway on the heap leach pad and a drilling program is planned. The Company does not anticipate that its permits or licenses will be affected by the Ministry’s mandate.
Stakeholders and investors concerned are invited to contact the Company directly at firstname.lastname@example.org Where email@example.com for specific information regarding the Sangihe Gold Project.
Lawsuit brought by TMS
The Company also wishes to provide information on a recent lawsuit filed by its subsidiary TMS. The lawsuit has no connection with the above property rights.
On August 24, 2022, TMS filed a lawsuit in Jakarta against several parties, including President Joko Widodo; the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan; Listyo National Police Chief Sigit Prabowo; Minister of Law and Human Rights Yasonna H. Laoly, Komnas HAM; Regent of the Sangihe Islands; Tuesday Posumah; Grace Kapal; Sonny Posungulah; and Andri Mailoor. TMS seeks damages to compensate for material losses amounting to US$37 million and Rp. 31.9 billion; and immaterial losses of Rp. 1 trillion.
Baru Gold CEO Terry Filbert commented: “TMS holds a valid production/mining license which has the legal right to explore, construct and produce gold on Sangihe Island. To clarify, the island is approximately 71,000 ha and our exploration license covers 42,000 ha. TMS requested the reduction of the exploration area to 25,000 ha. Our exploration activities have been carried out on less than 10% of our license area and construction has begun on a small parcel of 65 ha. Our construction activities have been continuously delayed by a group supported by illegal miners, whose numbers have increased significantly since operations restarted on the island. TMS has received little or no support from local police or government departments for operational activities or to ensure the safety of our employees and suppliers. Insufficient efforts have been made by local officials to end illegal mining operations on the island. Despite these obstacles, TMS continues to move forward with its planned activities. While this lawsuit does not affect our day-to-day operations at the Sangihe Gold Project, we hope it will bring attention to the situation so that action can be taken and TMS can be compensated for the economic losses it has suffered. suffered.
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located on the Indonesian island of Sangihe, off the coast of North Sulawesi. Sangihe has an existing Inferred Mineral Resource under National Instrument 43-101 of 114,700 indicated ounces of gold and 105,000 inferred ounces of gold, as reported in the “Independent Technical Report on Mineral Resource Estimates of the Binebase Deposits and Bawone, 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’s 70% interest in the Sangihe-mineral-tenement (“CoW”) employment contract is held through PT. Tambang Mas Sangihe (“TMS”). The remaining 30% stake in TMS is held by three Indonesian companies. The duration of the Sangihe CoW agreement is 30 years from the start of the production phase of the project.
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 any production decision made by the Company will not be based on an NI 43-101 Feasibility Study of Mineral Reserves that demonstrates economic and technical viability and as such there may be increased uncertainty. and various technological and economic risks. such as the interpretation of drilling results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not meet our expectations; fluctuations in commodity prices and currencies; failure to obtain adequate financing; regulations, recovery rates, refining costs and other relevant conversion factors, permitting and licensing risks; general market and mineral exploration risks and economic and production risks relating to design and engineering, manufacturing, technological processes and testing procedures and the risk that project production not be salable at a price that will cover the operating and maintenance costs of the project.
ABOUT BARU GOLD CORPORATION
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 of mining and finance professionals has extensive experience in starting up and operating small scale gold and coal assets. With strong support from retail and institutional shareholders, Baru is well positioned to become Indonesia’s next gold producer.
Frank Rocca, BAppSc. (Geology), MAusIMM, MAIG, CPI-KCMI, Chief Geologist of Baru Gold Corp. is the Qualified Person as defined by NI 43-101 who has reviewed and approved the contents of this press release.
BARU GOLD SOCIETY
By: Terry Filbert
Terry Filbert, Director
President and CEO
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Certain statements contained in this press release, which are not historical in nature, constitute “forward-looking statements” as that term is defined under applicable Canadian securities laws. These statements include, but are not limited to, statements or information regarding future work programs, the results and timing of any work program, the performance of the Company 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 that may cause actual results to differ. actual events, performance or events are materially different from those expressed or implied by such forward-looking statements. statements. These risks include the interpretation of drilling results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not meet our expectations; fluctuations in commodity prices and currencies; failure to obtain adequate financing; regulations, recovery rates, refining costs and other relevant conversion factors, permitting and licensing risks; general market and mineral exploration risks and economic and production risks relating to design and engineering, manufacturing, technological processes and testing procedures and the risk that project production not be salable at a price that will cover the operating and maintenance costs of the project. Forward-looking statements should not be construed as investment advice. Readers should make a detailed and 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 forward-looking statements. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward-looking statement to reflect events or changed circumstances after the date hereof.