(TheNewswire)
Sequestr IncEngaged to Advance Project Funding
Toronto, ON - TheNewswire - April 13, 2023 - BacTech Environmental Corporation (CSE:BAC ) ( OTC: BCCEF ) ( FSE:0BT1) (“ BacTech ” or the “ Company ”), a commercially provenenvironmental technology company delivering eco-friendly bioleachingand remediation solutions for precious metal and critical mineralrecovery, today announced that it is in the process of obtainingcertification as an issuer of Green Bonds, with the aim of raisingUS$20.0 million to finance the planned construction of its 50 tonnesper day bioleaching plant in Tenguel, Ecuador.
Upon completion, the facility is expected to be thelargest and most efficient bioleaching plant in South America. BacTechuses naturally occurring bacteria, harmless to both humans and theenvironment, to treat gold and base metal concentrates and toxictailings created through mining.
Green Bond Certification
BacTech has enlisted the help of Toronto-based Sequestr , a company that provides marketinfrastructure empowering companies to become industry ESG leaders, toprepare the necessary documentation for the certification application.
According to many analysts, the 2023 global Green Bondissuance is expected to rebound back to 2021 levels in and around$600B (1) stemming from supportive government policies, more certaintyin the interest rate environment and a catch-up of postponed issuancesfrom 2022. BacTech's bioleaching technology iswell-suited to meet the requirements for a green bond designation, asit has the ability to stabilize arsenic while releasing gold to safelymeet the processing needs of 100+ local small gold mining cooperativesand artisanal miners. To date, the Company has spent approximately $3million on land acquisition, bioleach test work, a BankableFeasibility Study, detailed engineering and permitting.
The proposed project in Tenguel will also have positivesocial impacts, as the prices paid to small miners have droppeddramatically since the imposition of an import tax on high-gradearsenic/gold concentrates into China. Presently, local miners have nochoice but to sell their production at reduced prices to offshorebuyers. BacTech intends to return local miner compensation back toprevious payment levels by eliminating financial penalties charged forarsenic and consequently pay better prices for the miners’material.
“BacTech meets all the criteria needed to apply forGreen Bond certification and I’m confident we are focused on theright financial instrument to develop the Tenguel project,” saidRoss Orr, CEO of BacTech Environmental. “There is no questionbioleaching will have a significant and positive impact on thesustainable operations of many in the area. Local miners are alsounder pressure to deal with toxic tailings that that eventually findtheir way into local rivers. Removing these elements not only bringsabout positive environmental results, but also frees up space formining to continue.”
The issuance of a green certificate for a green bond isnot a standard practice in the green bond market, however, someorganizations have developed certification steps to provide assurancethat a bond meets certain environmental criteria.
For example, the Climate Bonds Initiative (CBI) is aleading international certification scheme for green bonds. CBIreviews the aspects of the bond issuance, assesses its alignment witha set of environmental standards, and provides certification if itmeets the required criteria. In general, the issuer of a green bond isresponsible for ensuring that the bond meets the environmentalstandards set by the certification scheme.
The Company will keep the market updated about anyadditional Green Bond certification and Project Financingdevelopments.
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:
• Pre-tax NPV (Net Present Value with 5%discount rate) of $60.7M
• Pre-tax IRR (Internal Rate of Return) of57.9%
• Annual Gold Production of 30, 900ounces
• Capital Cost of $17.0M
• Bioleach Operating Cost of $212 pertonne
• Pre-tax Earnings Prior to Employee Bonus– $10.9M annually
• 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 calledbioleaching to recover metals like gold, silver, cobalt, nickel, andcopper, while also safely removing harmful contaminants like arsenic.This process is eco-friendly and uses naturally occurring bacteriathat are safe for both humans and the environment. By using ourproprietary method of bioleaching, we are able to neutralize toxicconcentrates and tailings while also creating profitableopportunities. The company is publicly traded on several stockexchanges, including the CSE, OTCQB, and Frankfurt StockExchange.
For further information contact:
Ross Orr
President & CEO, BacTech EnvironmentalCorporation
416-813-0303 ext. 222,
Email: borr@bactechgreen.com
Website: https://bactechgreen.com/
Investor Presentation:https://bactechgreen.com/investors/
(1) “Green Bond Growth to Return in 2023,” Markets360, BNP Paribus, February 7, 2023 https://globalmarkets.cib.bnpparibas/green-bond-growth-to-return-in-2023/
Disclaimer: Stated goals of raising US$20 million tofinance planned construction of the project in no way guaranteesprocess approval.
Special Note Regarding Forward-LookingStatements
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.
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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