Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Baru Gold Corp V.BARU

Alternate Symbol(s):  BARUF

Baru Gold Corp. is a Canada-based junior gold developer with NI 43-101 gold resources in Indonesia. The Company is focused on developing and producing precious metals projects in Indonesia. The Company’s focus is on developing precious metals projects with significant resource upside potential and near-term production capabilities. The Company’s Sangihe Gold project mineral tenement consists of one block covering the southern half of Sangihe Island, located between the northern tip of Sulawesi Island (Indonesia) and the southern tip of Mindanao (Philippines). The Sangihe Project covers 42,000ha; this includes the Bawone, Binebase prospects on the eastern part of the island and Taware prospect in the south-central region with infrastructure in place. The Company has a 70% interest in the Sangihe project.


TSXV:BARU - Post by User

Post by brodeuron Nov 24, 2024 4:18pm
181 Views
Post# 36328181

BARU.v - “Mexico Mike” Kachanovsky on recent corporate event

BARU.v - “Mexico Mike” Kachanovsky on recent corporate event
https://forum.mexicomike.ca/viewtopic.php?f=2&t=18183&sid=6f517ce67da8a2ad106376daea59d034

The LOI is with PT Arsari Tambang, which is a subsidiary corporation specializing in mining interests that is part of a much larger international conglomeration Arsari Group. The president of this company is highly respected, well-connected and has established an excellent reputation as a business leader. He controls companies in many countries, including Canada. The negotiations to establish this partnership have been ongoing for more than a half a year. Sangihe was visited by a respected geologist as part of this process to validate the potential resources of the project. To put it in perspective, Baru is a tiny junior explorer with a M/C of $7 million that attracted the interest of an international conglomerate. This certainly suggests that we were right to hold through all of the distractions and hurdles over the last few years, and that Sangihe is something special in terms of a potential gold development target.

Mining is a key part of the economic strategy underway to build prosperity in Indonesia. One of the largest gold mining operations in the country is located in proximity to Sangihe and started operations on a very small scale many years ago, just as the current opportunity for Baru is playing out. Under the plan for the LOI, the founder of Arsari Group, Hashim will take a management position with the holding company that controls Sangihe and assume 10% ownership. He will have the opportunity to expand his ownership to 25% with a purchase option for the additional 15% interest that will be based on resource value. This is an important distinction, as the market value for Baru is small right now, but the resource value for Sangihe is a multiple of our current market cap and probably going much higher as further resource exploration is completed. There is a very good potential to expand the compliant resources of the project to more than 1 million ounces very quickly through coordinated shallow drilling work. The preliminary exploration and surface prospecting was completed a couple of years ago and outlined numerous high-priority targets, in addition to historic gold zones that may be confirmed. Therefore the purchase option - which is exercisable within 5 years from the approval of the transaction - may be worth many millions of dollars to Baru shareholders.

Baru has a growth plan to establish mine development and commence operations as soon as the mining license is granted. They have selected a recovery circuit that offers a lower up-front capital cost with rapid incremental growth potential. The oxide gold resources at Sangihe provide high recovery efficiency and low cash costs, projecting to achieve cash flow of $2 million or more per month very early in the growth curve. The logistical support and business connections of Hashim could support this plan and enable Baru to grow to a much larger mining company at a time when gold is trending near all-time highs. In short, the upside from here is very attractive and realistic to achieve.

I have been a shareholder of this company for several years in the current iteration. It has not been easy to hold and wait. I am encouraged that at last Baru has attracted a real partner that can contribute towards establishing a significant mining operation. I think the share price has a long way to run if they can deliver important milestones in the weeks ahead. The AGM is at the end of December, and then there will be a shareholder vote to approve the transaction. Thereafter, once Hashim becomes a significant minority owner of the project I can see a very rapid growth curve that will be worth the long wait. I continue to hold my core position and have some optimism that we are close to getting on the strategy to create shareholder value.
cheers!
mike
<< Previous
Bullboard Posts
Next >>