(TheNewswire)
Second Tranche ofRoyalty Units and $1M Investment Through Convertible Debenture Now Secured
TORONTO, ON – TheNewswire- April 21, 2022 – BacTech EnvironmentalCorporation (CSE:BAC ) , (CNSX:BAC.CN), ( OTC:BCCEF ) , ( FSE:0BT1)(“ BacTech ” or the “ Company ”), a commercially provenenvironmental technology company delivering effective and eco-friendlybioleaching and remediation solutions, r eportsreceiving binding subscription agreements for a Second tranche, adding$900,000 to its non-brokered Private Placementbeing offered at a price of $0.20 per Unit. Gross proceeds of$1.21M , also at a price of $0.20 perUnit, were closed by the Company in its earlier initial tranche.
In addition, the Company is pleased to announce that ithas arranged for a $1M convertible debenture with an existingstrategic investor. The terms of the convertibledebentures call for a conversion at $0.15 per share, an annualinterest rate of 8% and a term of 18 months.
Ross Orr, CEO of BacTech Environmental Corp. said:“With the current global events unfolding, we are happy to be addinganother $1.9M in these market conditions at above market prices. Talkswith interested parties continue, as the uniqueness of the financingoffering still has many intrigued. To be prudent, we also created thisalternate structure, and I’m pleased that this particularshareholder has chosen to increase their investment in BacTech. Investors are increasingly taking note of our full portfolio ofsustainable metal recovery interests, in addition to recognizing thesizeable potential of our lead Ecuador project.”
The Company is offering a $.20 unit comprised of onecommon share and one common share purchase warrant at $.30 for twoyears. The financing includes a 0.5% royalty for every $1M raisedunder the offering. The financing offers investors the chance toparticipate in a royalty directly as opposed to through the purchaseof a royalty company’s shares. For illustration purposes, using$1900 gold price and 31,000 ounces gold per annum, a royalty would be$294,500 per $1M investment. After the investor has received a 200%after-tax return (based on a Canadian 25% tax on the payment) theroyalty will be cancelled, and the investor will retain their commonshares.
Aboutthe Tenguel – Ponce Enriquez Bioleaching Project
BacTech is planning to build a new owner-operatedbioleaching facility in Tenguel, near Ponce Enriquez, Ecuador, in aregion where arsenic is associated with gold ore (Arsenopyrite). TheCompany’s plan is to build a 50 tpd bioleach plant capable oftreating high gold/arsenic material. A 50 tpd plant, processing feedof 1.75 ounces of gold per tonne, similar to feeds available to theCompany from local miners, would produce approximately 31,000 ouncesper year. Plant designs are modular and can be expanded withoutaffecting ongoing production. The total concentrate market in the Ponce Enriquez area is estimated tobe between 200 and 250 tonnes per day, allowing for increasedthroughput potential with a larger plant.
Key economic highlights:
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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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Assumed Purchase Prices of Concentrate – 65% of thecontained gold value
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Pre-tax Earnings Prior to Employee Bonus – $10.9Mannually
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Estimated local employee bonus pool – $1.64M
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Payback (70% DEBT) – 2 years
In total, there are over 90 small mines operating inthe area. BacTech intends to return local miner compensation back toprevious payment levels, prior to a sweeping price reduction imposedby Chinese buyers due to recent import levies on arsenic/goldconcentrates entering China. BacTech continues to investigate theprospects of establishing additional modern bioleaching facilitiesacross other areas of Ecuador, Peru, and Colombia. Where possible, theCompany will partner with national and local governments,non-governmental organizations (NGOs) and others to assist with thefunding of these projects and ensure that they meet the Company’shigh expectations not only for environmental standards, but also forthe highest standards in all ESG considerations.
About BacTech EnvironmentalCorporation
BacTech is a proven environmental technology company,delivering effective and eco-friendly bioleaching and remediationsolutions to commercial operations to process and recover preferredmetals (gold, silver, cobalt, and copper) smartly and safely removeand transform harmful contaminants like arsenic into benignEPA-approved products for landfill. Tapping into numerousenvironmental and economic advantages of its proprietary method ofbioleaching, BacTech uses naturally occurring bacteria, harmless toboth humans and the environment, to neutralize toxic mining sites withhigh-pay potential. BacTech is publicly traded on the CSE under thesymbol “BAC”; on the OTC as “BCCEF”; and the Frankfurt StockExchange as “0BT1”.
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:163,805,558
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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