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(via TheNewswire)
May 15, 2025 – TheNewswire - VANCOUVER, B.C. - Baru Gold Corp. (the “Company” or “Baru”) (TSX.V: BARU) (OTCQB: BARUF) is pleased to announce that it has entered into an arm’s length binding preliminary collaboration agreement (the “Preliminary Collaboration Agreement”) with Quantum Metal Thailand Co., Ltd. (“QMT”) on May 15, 2025, contemplating the investment of USD$100 million by QMT to enhance the Company’s gold production and refining capacity of gold up to a purity rate of 99.99%.
The purpose of the Preliminary Collaboration Agreement is to establish an understanding between the parties for the development of a gold offtake and funding collaboration, including pricing terms and equity participation by QMT in the Company. Following the execution of the Preliminary Collaboration Agreement and no later than 60 days from the date of execution, the parties intend to enter into a definitive collaboration and offtake agreement (the “Definitive Agreement”).
QMT is a next-generation gold e-commerce platform that has established interests in both the supply and distribution of gold. QMT’s has multiple offtake agreements for gold mines in several countries and is a major shareholder in an operating gold mine in Malaysia.
QMT’s e-commerce platform specializes in the trading of digital gold and redemption of physical gold bars, and it is one of the largest distributors of 99.99% gold bars (the “Refined Gold) in Asia that operates in over 13 countries across the globe. QMT’s e-commerce gold exchange platform has over 1 million active members and has built strong partnerships with several reputable financial technology firms and banking institutions such as Perth Mint Australia, Brinks Singapore Pte Ltd, ABC Bullion (Australia), Wipay Payment Solutions Limited and Sou Seng Heng Gold Shop.
The Definitive Agreement, over a period of three years from the acceptance date of the Definitive Agreement by the TSX Venture Exchange, shall facilitate an aggregate investment of up to USD $100 million by QMT (the “Investment”) in the mining projects of the Company in tranches of not less than USD $10 million per tranche, where each tranche shall be considered a distinct funding investment (each, an “Investment Tranche”). QMT shall fund the initial Investment Tranche for an aggregate amount of up to USD $30 million (the “Initial Investment Tranche”). The proceeds of the Investment shall be used to enhance the Company’s gold production and refining capacity in its mining projects in Indonesia.
For each Investment Tranche, QMT shall receive equity shares equivalent to 1.5% of the Company’s issued capital which equity interested shall increase by 1.5% with each Investment Tranche being completed on the terms of the Definitive Agreement, subject to a maximum holdings interest of no more than 19.0% of the Company’s issued capital.
The Company shall repay the Initial Investment Tranche with the Refined Gold equal to the value of the Initial Investment Tranche at a price ounce of the Refined Gold as quoted on the London Bullion Market Association (“LMBA”) on the date of such repayment less a 30% discount and each subsequent Investment Tranche shall be fully repaid with the Refined Gold at the rate of the then current LMBA price per ounce less a 20% discount.
QMT shall also receive 20% of the Company’s monthly Refined Gold production until the entire Investment funding is repaid in full over a period of three years commencing on the date of production, subject to the applicable discount on the repayment of the Initial Investment and the subsequent Investments.
Shareholders should note that the Preliminary Collaboration Agreement constitutes a binding agreement between the parties and serves as an expression of their mutual intent to proceed with the negotiation and execution of the Definitive Agreement within a 60 day’s period following the satisfactory due diligence review of the Company’s financials, operations, permits, and production capacities by QMT. No finder’s fee is payable.
Mr. Terry Filbert, CEO of Baru Gold, commented, “Obviously I am thrilled with this agreement. Once realized, the funding will allow the Company to bring the Sangihe Gold Project into production and start the planned drill exploration program. The advancement of the Sangihe Project will be good for both shareholders and residents on Sangihe Island. I’m very happy and acknowledge the strong working relationship with Quantum Metal Thailand, and look forward to our new partnership.”
ABOUT SANGIHE GOLD PROJECT
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
info@barugold.com
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
kevin@jeminicapital.com
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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