Baru Gold Corp. (TSX-V:BARU) said it had completed the application process to request a new upgrade to Production Operation Status from the Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR).
This upgrade will replace the company's current Production Operation Activity Status, the company noted in a statement.
Indonesia-focused Baru Gold told investors that the cancellation of the current Activity Stage Production Operation Approval is an administrative step and does not affect the company's Contract of Work (CoW) or permits.
The new request reduces the operational area from 42,000 ha to 25,000 ha, excluding environmentally sensitive and non-gold-bearing areas mentioned in a previous lawsuit.
"I am very pleased with the continued support and cooperation from the MEMR. We are now in the final stages of approval for our new Stage of Activity upgrade to Production Operation Status,” CEO Terry Filbert said in a statement.
Baru Gold is working to move from the phase of preparing and exploring its mining site to the phase where it can start extracting and processing minerals or resources on a larger scale. This status change often involves meeting specific regulatory, environmental, and legal requirements set by the government.
“I can understand the alarm that a shareholder might experience when they discover that our current Decree from the Minister has been canceled. However, I would urge shareholders to view this action as a necessary final step in obtaining a new Stage of Activity Upgrade to Production Operation Status,” Filbert added.
The CEO told shareholders that Baru had been working hard on a new application for months and was “fully aware” of the cancellation.
“This cancellation is all part of the plan previously agreed to by MEMR. We have always been legally able to operate but I believe this is a better long-term solution.”
The process began on July 14, 2023, and concluded on September 11, 2023.
The Sangihe gold project, located off the northern coast of Sulawesi, has an existing mineral resource. Baru plans to proceed to production without first establishing mineral reserves supported by a feasibility study.
Image source: Angela Harmantas
Source: www.proactiveinvestors.com/Baru Gold Finalizes New Application With Indonesia For Sangihe Project
