(TheNewswire)
TORONTO, ON. - TheNewswire - March 27, 2023 - BacTech EnvironmentalCorporation (OTC:BCCEF ) , ( CSE:BAC) (“BacTech or the Company”), acommercially proven environmental technology company deliveringeffective biomining metal recovery and eco-friendly remediationsolutions, announced today that it has closed the first tranche for$732,000 of its recently announced non-brokered private placement ( see news release dated March13 th , 2023 ) for $1M in equity funding.
Each Unit, priced at $0.08 per Unit, comprises onecommon share (each a “Share” ) and one common share purchasewarrant (each a “Warrant” ) in the capital of the Company. Each whole Warrant will entitle the holder to acquire one additionalcommon share (a “WarrantShare” ) in the capital of the Company at aprice of $0.12 for a period of two years from the date the Units areissued. If during the exercise period of the Warrants the Company'sshares trade at $0.20 per share or higher for a period of 10consecutive trading days on the CSE, the Company may provide notice inwriting to the holders of the Warrants that the expiry date will beaccelerated thirty days from the date of providing such notice (the “EarlyAcceleration” ).
This initial closing will allow us to meet our businessobjectives and basic working capital needs over the next 12 months.Additional capital will allow us to expedite deposits on equipmentwith longer lead times.
A finder’s fee of $16,600 was paid and 208,500 BrokerWarrants were paid as part of the capital raise. The Broker Warrantsbuys have a 2-year term and buys an additional common share at$0.08.
All Units sold under the Offering (the “LIFEUnits”) were sold to purchasers pursuant to the listed issuerfinancing exemption (the “Listed Issuer Financing Exemption”)under Part 5A of National Instrument 45-106 – Prospectus Exemptions(in Québec, Regulation 45-106 respecting Prospectus Exemptions,collectively, “NI 45-106”). The Common Shares and Warrantsunderlying the LIFE Units are freely tradeable and are not subject toa hold period pursuant to applicable Canadian securities laws.
About the Tenguel – Ponce EnriquezBioleaching Project
BacTech is planning to build a new owner-operatedbioleaching facility in Tenguel, Ecuador, in a region where arsenic isassociated with sulphide gold ore (Arsenopyrite). The Company’s planis to build a 50 tpd bioleach plant capable of treating highgold/arsenic material. A 50 tpd plant, processing feed of 1.75 ouncesof gold per tonne, similar to feeds available to the Company fromlocal miners, would produce approximately 31,000 ounces per year.Plant designs are modular and can be expandedwithout affecting ongoing production. The total concentrate market inthe Ponce Enriquez area is estimated to be between 200 and 250 tonnesper day, allowing for increased throughput potential with a largerplant. BacTech has signed an agreement with the government to build aPhase 2 plant that would see the addition of 150-200 tpd of capacitycapable of producing in excess of 100,000 ounces per annum.
Key economic highlights, assuming a base gold price @$1,600 per ounce:
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Pre-tax NPV (Net Present Value with 5% discount rate)of $60.7M
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Pre-tax IRR (Internal Rate of Return) of 57.9%
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Annual Gold Production of 30, 900 ounces
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Capital Cost of $17M
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Bioleach Operating Cost of $212 per tonne
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Pre-tax Earnings Prior to Employee Bonus – $10.9Mannually
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Estimated local employee bonus pool – $1.64M
In total, there are over 100 small mines operating inthe area. BacTech continues to investigate the prospects ofestablishing additional modern bioleaching facilities across otherareas of Ecuador, Peru, and Colombia. Where possible, the Company willpartner with national and local governments, non-governmentalorganizations (NGOs) and others to assist with the funding of theseprojects and ensure that they meet the Company’s high expectationsnot only for environmental standards, but also for the higheststandards in all ESG considerations.
About BacTech EnvironmentalCorporation
BacTech Environmental Corporation is a company thatspecializes in environmental technology. We use a process called bioleaching torecover metals like gold, silver, cobalt, nickel, and copper, whilealso safely removing harmful contaminants like arsenic. This processis eco-friendly and uses naturally occurring bacteria that are safefor both humans and the environment. By using our proprietary method of bioleaching, we are able to neutralizetoxic concentrates and tailings while also creating profitable opportunities. The company ispublicly traded on several stock exchanges, including the CSE, OTCQB,and Frankfurt Stock Exchange.
For further information contact:
Ross Orr
President & CEO, BacTechEnvironmental Corporation
416-813-0303 ext. 222
Vimeo http://vimeo.com/bactechgreen
Special Note RegardingForward-Looking Statements
This news release contains “forward-lookinginformation”, which may include, but is not limited to, statementswith respect to future tailings sites, sampling or otherinvestigations of tailing sites, the Company’s ability to make useof infrastructure around tailings sites or operating performance ofthe Company and its projects. Often, but not always, forward-lookingstatements can be identified using words such as “plans”,“expects”, “is expected”, “budget”, “scheduled”,“estimates”, “forecasts”, “intends”, “anticipates”, orbelieves” or variations (including negative variations) of suchwords and phrases, or state that certain actions, events or results“may”, “could”, “would”, “ might ” or “will” be taken, occuror be achieved. Forward-looking statements involve known and unknownrisks, uncertainties and other factors which may cause the actualresults, performance, or achievements of the Company to be materiallydifferent from any future results, performance or achievementsexpressed or implied by the forward-looking statements.Forward-looking statements contained herein are made as of the date ofthis news release and the Company disclaims, other than as required bylaw, any obligation to update any forward-looking statements whetherbecause of new information, results, future events, circumstances, orif management’s estimates or opinions should change, or otherwise.There can be no assurance that forward-looking statements will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly, thereader is cautioned not to place undue reliance on forward-lookingstatements.
Sharesoutstanding: 183,460,333
The Canadian Securities Exchange (CSE) has not reviewedand does not accept responsibility for the adequacy or the accuracy ofthe contents of this release.
This press release does not constitute an offer to sellor a solicitation of an offer to buy any of the shares, nor is it a solicitation of interest from aprospective investor.
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