Baru Gold Corp. (TSX-V:BARU) said it has closed the second tranche of the $2.25 million financing it announced on February 21, 2023, raising $223,650 by issuing 7,455,000 units.
The total private placement consists of up to 75,000,000 units priced at $0.03 per unit. The proceeds raised will be used for immediate working capital commitments at the Sangihe Gold project.
Each unit will be comprised of one common share in the capital of the company and one common transferable share purchase warrant. Each full warrant shall be exercisable into one share for two years from the date it is issued at an exercise price of $0.05 for the first year and $0.10 for the second year.
No finder’s fees are payable in cash and no finder’s warrants to purchase were issued. All securities issued in the tranche of the private placement will be subject to a four-month hold period expiring July 16, 2023.
The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX Venture Exchange.
The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The Sangihe Gold Project 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.
The company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study.
The company's 70% interest in the Sangihe-mineral-tenement contract of work (CoW) is held through PT. Tambang Mas Sangihe (TMS). The remaining 30% 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.
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.
Contact the author at jon.hopkins@proactiveinvestors.com