(TheNewswire)
TORONTO, ON – TheNewswire- May10, 2022 – BacTech EnvironmentalCorporation (CSE:BAC ) , (CNSX:BAC.CN), ( 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 the completion of a 2 nd tranche ofits private placement, further to the Company’s April 21news release .
In the second tranche, the Company issued 4,500,000Units at a price of $0.20 per Unit for aggregategross proceeds of $900,000. Additionally, a $1M convertible debenturewas also closed with an existing strategic investor at $0.15 pershare.
Prior to this, gross proceeds of $1.21Mwere announced closed by the Companyin its initial tranche. The Company is offeringa $.20 unit comprised of one common share and one common sharepurchase warrant at $.30 for two years. The financing includes a 0.5%royalty for every $1M raised under the offering. The financing offersinvestors the chance to participate in a royalty directly as opposedto through the purchase of a royalty company’s shares.
For illustration purposes, using $1900 gold price and31,000 ounces gold per annum, a royalty would be $294,500 per $1Minvestment. After the investor has received a 200% after-tax return(based on a Canadian 25% tax on the payment) the royalty will becancelled, and the investor will retain their common shares.
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 thePonce Enriquez area is estimated to be between 200 and 250 tonnes perday, allowing for increased throughput potential with a largerplant.
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 be materially different from any future results,performance or achievements expressed or implied by theforward-looking statements. Forward-looking statements containedherein are made as of the date of this news release and the Companydisclaims, other than as required by law, any obligation to update anyforward-looking statements whether because of new information,results, future events, circumstances, or if management’s estimatesor opinions should change, or otherwise. There can be no assurancethat forward-looking statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, the reader is cautionednot to place undue reliance on forward-looking statements.
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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