Business
Baru Gold Signs MoU for Production Operation Plus $6 Million Cash
(TheNewswire) August 3, 2023 – TheNewswire - Vancouver, BC - Baru Gold Corp ...
About this update from Baru Gold Corp
[{"type":"text","content":"Baru Gold Signs MoU for Production Operation Plus $6 Million Cash\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n August 3, 2023 – TheNewswire -\n \n \n Vancouver, BC - Baru Gold Corp\n \n \n (\n \n \n TSXV:BARU\n \n \n )\n \n \n |\n \n \n (\n \n \n OTC:BARUF\n \n \n )\n \n \n (“Baru” and its\nsubsidiary PT. Tambang Mas Sangihe (“TMS”) or the “Company”)\nwishes to inform stakeholders and investors on the signing of a\nMemorandum of Understanding (MoU) that includes both financial and\noperational terms with mine contractor CV. Mahamu Hebat Sejahtera (the\n“Contractor”). The Contractor is a resident of Sangihe Island with\nprevious mining experience.\n \n \n \n \n The terms of the MoU state that the Contractor will pay\nthe Company approximately CAD $6 million over three months. In\nexchange, the Company grants the right to the Contractor to operate\nand produce gold for 5 years on 65 of the 42,000 ha within the\nCompany’s Contract of Work area.\n \n \n \n \n On receipt of funds, the Company will license to the\nContractor, a previously operating gold mine. The Contractor will\nmanage and expand this operation, and fund all additional costs\nrelated to staffing, land acquisition, construction of the mining pit,\nheap leach pads, and reclamation. As the operations were previously\nproducing gold, the time necessary to produce cash flow will be\nshortened considerably.\n \n \n \n \n Under the terms of the MoU, the Contractor will receive\n65% of the total gold recovered, and the Company will retain 35%.\n \n \n \n \n This agreement does not prevent the Company from\nopening additional worksites within the Contract of Work area. The\nCompany retains control of the Sangihe Project and will oversee and\nsupervise all operations led by the Contractor. The Contractor must\nabide by the same environmental and reclamation standards required of\nthe Company by Indonesian law.\n \n \n \n \n The Company and Contractor are currently negotiating\nterms of the operating agreement, which may be subject to mutually\nagreed to changes from the MoU. The current negotiations have been\nproductive, and the parties look forward to a conclusion being\nreached. All due diligence, by both parties, has been\ncompleted.\n \n \n \n \n As this transac...