Baru Gold Corp. (TSX-V:BARU) announced that it has engaged a specialist advisory firm to lead efforts to raise funds for production operations at its Sangihe gold project in Indonesia.
The company said this decision follows increased institutional and corporate interest driven by sustained high gold prices.
The retained firm, with offices in Hong Kong, Jakarta, Perth, and Singapore, is recognized for its expertise in the metals and mining industry across Asia and Australia.
Its leadership team boasts extensive experience, having facilitated over $8 billion in mining-related transactions, including landmark deals in Indonesia's gold and coal sectors, Baru Gold highlighted.
The firm will lead Baru Gold's funding efforts by connecting with its investor network, coordinating interest, negotiating terms, and supporting due diligence to finalize a successful agreement.
The engagement includes a success-based fee structure, incentivizing the firm to deliver optimal value.
“I feel that Sangihe is one of the best undeveloped gold assets in Indonesia, and it is secured by a Contract of Works," Baru Gold CEO and PT TMS president director Terry Filbert commented.
“We are open to all competitive funding offers but would prefer financing that is non-dilutive to shareholders. Once in production, our cash flow will very quickly rise and exceed costs. It should not take long to pay off any outstanding liabilities. Projected production costs are low and rising gold prices will only improve profit margins.”
Baru Gold noted that the terms of the existing Letter of Intent with PT Arsari Tambang, announced earlier this month, remain unaffected and are proceeding as planned.