(TheNewswire)
TORONTO, ON – TheNewswire- March 13, 2023 – BacTech EnvironmentalCorporation (CSE:BAC ) , ( OTC:BCCEF ) , ( FSE:0BT1)(“ BacTech ” or the “ Company ”), a commercially proven environmental technology company deliveringeco-friendly bioleaching and remediation solutions for precious metaland critical mineral recovery , is pleased toannounce a Non-Brokered private placement (the “Offering” ) forgross proceeds of $1 million.
Under the Offering, the Company will issue 12,500,000units of the Company (each, a “ Unit ”) at a price of C$0.08 per Unit. EachUnit consists of one common share of the Company (each, a“ Common Share ”) and one common share purchase warrant (each wholewarrant, a “ Warrant ”). Each Warrant shall entitle theholder to purchase one Common Share at a price of $0.12 up to 24months from closing. In the event the commonshares trade at or above $0.20 for 10consecutive trading days, as indicated on the CSE Exchange, theCorporation shall have give notice by way of a press release that theWarrants’ expiry date will expire 20 trading days thereafter.
BacTech also announces it has engaged the services ofVancouver-based MARS Investor Relations Inc. ("MARS"), afull-service investor relations and consulting services companyfocused on the junior mining sector. Under the terms of the engagementagreement (the "Agreement" ), the Company willcompensate Mars $144,000 for the 12-month initial term of theAgreement and has granted MARS stock options (the "Options")exercisable to acquire an aggregate of 500,000 common shares at aprice of $0.10 per share until March 13, 2028. The Options shallvest quarterly over a period of 12 months, with 25% vesting eachquarter.
“I’m confident that we are close to being in aposition to finance the Tenguel project,” said Ross Orr, CEO ofBacTech Environmental. “Today’s announced funding provides somemuch-needed working capital, and also marks the beginning of abroader, more concerted investor relations program to share ourintentions to construct what we believe will bethe largest and most efficient bioleaching plant in the SouthAmerica.”
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.
This news release has been reviewed and approved by Dr.Paul Miller; a Qualified Person (“QP”) as set out under NI43-101.
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 expanded without affectingongoing production. The total concentrate market in the Ponce Enriquezarea is estimated to be between 200 and 250 tonnes per day, allowingfor increased throughput potential with a larger plant. BacTech hassigned an agreement with the government to build a Phase 2 plant thatwould see the addition of 150-200 tpd of capacity capable of producingin 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 using a bioleaching process torecover metals like gold, silver, cobalt, nickel, and copper, whilealso safely removing arsenic and other harmful contaminants. Thisprocess is eco-friendly and uses naturally occurring bacteria that aresafe for 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:
President & CEO, BacTech Environmental Corporation
416-813-0303 ext. 222,
Email: borr@bactechgreen.com
Website: https://bactechgreen.com/
Investor Presentation: https://bactechgreen.com/investors/
Vimeo http://vimeo.com/bactechgreen
Special Note Regarding Forward-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” betaken, occur or be achieved. Forward-looking statements involve knownand unknown risks, uncertainties and other factors which may cause theactual results, performance, or achievements of the Company to bematerially different from any future results, performance orachievements expressed 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.
Shares outstanding:173,358,891
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 asolicitation of interest from a prospective investor.
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