Baru Gold Corp. has closed an additional $90,900, issuing 4,545,000 units at two cents per unit, as part of the private placement closings previously announced on Jan. 24, 2024, Jan. 31, 2024, and Feb. 13, 2024. Each unit will be comprised of one common share in the capital of the Company (a “Share”) and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant shall be exercisable for one Share for 2 years from the date such Warrant is issued at an exercise price of $0.05.
The Company has raised an aggregate of $210,400 and issued 10,520,000 units.
The proceeds raised from the Private Placement will be used as follows: $80,000 (towards the projected $150,000) legal fees related to the processing of the upgrade of its Sangihe Gold Project to production operation status, $80,000 for audit fees, and $50,400 for general working capital. No finder’s fees were paid in connection with this issue.
All securities issued in the Private Placement will be subject to a four-month hold period expiring July 8, 2024.
The Company also wishes to announce an increase in the non-broker private placement announced on March 7, 2024 consisting of up to 6,000,000 units priced at $0.02 per unit for total proceeds of $150,000. The funding will be used as follows; $70,000 for the estimated balance of legal fees related to the processing of the upgrade of its Sangihe Gold Project to production operation status and the $80,000 balance for working capital. There are no proposed payments to non-arm’s length parties of the Company and no payments to persons conducting investor relations activities.
Each unit will comprise one common share in the capital of the Company and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase over two years one additional share at an exercise price of $0.05. This round of financing is expected to close on or before March 25, 2024.
The Private Placement is subject to regulatory approval, and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. All funds are denominated in Canadian dollars.
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 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.