Baru Gold Corp Announces Private Placement to Fund Mining Projects

Baru Gold Corp, a junior gold developer with operations in Indonesia, has announced a private placement to raise up to $240,000 through the issuance of 4,000,000 units at $0.06 each. Each unit will consist of one common share and one non-transferable warrant, with each warrant entitling the holder to purchase one additional share at an exercise price of $0.10 over a two-year period. The company expects the financing to close by September 16, 2026.

The proceeds from this private placement will be used for working capital. However, the financing is subject to re-pricing if the stock price increases following the release of this news. The company will also have the option to pay finders’ fees in cash or securities, or a combination of both, as permitted by the policies of the TSX Venture Exchange.

Baru Gold Corp holds a 70% interest in the Sangihe Gold Project, located on the Indonesian island of Sangihe, through its subsidiary PT. Tambang Mas Sangihe (TMS). The remaining 30% interest is held by other Indonesian corporations. The project covers an area of approximately 25,000 hectares, with only 10% of the gold-bearing area having been explored to date. An existing National Instrument 43-101 report has been prepared for the Binebase and Bawone deposits, suitable for mining planning and production schedules for the targeted 65-hectare area. The company aims to proceed with production without first establishing mineral reserves supported by a feasibility study, recognizing the increased uncertainty and technological and economic risks involved.

The Sangihe Gold Project is subject to a 30-year Contract of Work agreement with the Indonesian government, which requires the company to meet certain requirements before commencing production. Baru Gold Corp has already obtained the necessary environmental permit for the project.

In related party transactions, insiders of the company are participating in the private placement, which constitutes an exempted related party transaction under Multilateral Instrument 61-101. The participation of insiders is exempt from formal valuation and minority shareholder approval requirements due to the low value of the securities involved.

All securities issued pursuant to this financing will be subject to a four-month hold period under applicable Canadian securities laws. The funds raised will be denominated in Canadian dollars, and the company has noted that the securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or state securities laws.

Baru Gold Corp's President and CEO, Terry Filbert, commented, "This private placement will provide the necessary working capital to advance our projects, particularly the Sangihe Gold Project. We are committed to exploring and developing this promising resource, and we believe this financing will enable us to make significant progress."