Baru Gold Hits Key Milestone, Enters into Exclusive Negotiations for Funding of Up To USD$100,000,000
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July 25, 2025 – TheNewswire – VANCOUVER, B.C. – Baru Gold Corp. (the “Company” or “Baru”) (TSX.V: BARU) is pleased to report significant progress in securing the up to $100 million USD funding agreement announced on May 15, 2025 with Quantum Metal Thailand Co., LTD. (“QMT”).
Baru and QMT are now negotiating exclusively with each other over the funding of the Sangihe Gold Project and are not engaging third party offers for similar arrangements. This milestone was reached following the successful completion of a key funding milestone: Baru raising $1 million CAD in a private placement.
This milestone marks a significant step in advancing the strategic partnership with QMT and bringing the Company’s Sangihe Gold Project into production operations. The $1 million CAD financing milestone was a prerequisite required by Baru management in advance of definitive agreement negotiations to ensure they would only occur during a period when the Company was well capitalized. The intention of this period of exclusivity is to enable both parties to focus on the definitive agreement and accelerate the closing of the up to $100 million USD in funding, that aligns with our strategy of securing long-term value for shareholders.
Baru and QMT are still in a period of due diligence and negotiations on the terms of the definitive agreement. QMT and Baru have held several rounds of productive negotiations and continue to undertake due diligence. Shareholders will be notified following the attainment of significant milestones.
All parties are working collaboratively to finalize terms and are in regular consultations. As previously reported, the definitive agreement is to be executed within a 60 day’s period following the satisfactory due diligence review of the Company’s financials, operations, permits, and production capacities by QMT. To accelerate the closing of this financing, the definitive agreement is being negotiated while the due diligence is under review.
The proposed funding would support near-term development, resource expansion, and all construction activities for the Sangihe Gold Project. The Company believes this transaction, once finalized, will not only secure long-term capital for advancement of the Sangihe Gold Project, but unlock meaningful value for shareholders.
“This is the kind of strategic momentum we’ve been building toward.”, said CEO Terrence Filbert. “We are confident that with QMT, we can accelerate development at Sangihe and deliver on our vision of becoming Indonesia’s next gold producer. This partnership is a major step forward, and our shareholders should be encouraged by the strength of our progress and the opportunities ahead. This is a transformational moment for Baru.”
ABOUT SANGIHE GOLD PROJECT
The Sangihe Gold Project (“Sangihe”) is located on the Indonesian island of Sangihe, off the northern coast of Sulawesi with a gold bearing area of approximately 25,000 ha. Sangihe has an existing National Instrument 43-101 report suitable for mining planning and production schedules for an area within the 65-ha area targeted for initial production. See the Company’s “Independent Technical Report on the Updated Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” (Mining Associates Pty Ltd, February 1st, 2025). Only 10% of the gold bearing area has been explored.
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.
On behalf of the Board of Directors
BARU GOLD CORP.
“Terry Filbert”
Terry Filbert
Chairman and Chief Executive Officer
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.
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