(TheNewswire)
TORONTO, ON – TheNewswire- September 7, 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 that further to its acquisition and closing of the 100-acre (40 ha) land package for its proposed processing plant in Tenguel, Ecuador, theCompany has introduced a unique shared land management program thatwill see on-site cocoa farming continue with proceeds from all cocoasales being retained by
the former employees of the purchased land.
Strategically situated to meet the processing needs of130+ area gold mining cooperatives and companies, the property wasrecently reclassified from agricultural toindustrial in order to serve as a regional goldand silver processing hub. However, understanding the sensitivity of this transaction with formeremployees and noting that approximately 80% ofthe farm’s 1,500 producing cocoa trees willremain untouched during Phase 1 plant development, BacTech created andsigned an agreement with the workers to allow them to continueoperating the farm.
“When we initially visited this site, we quicklyrealized that there was more than just our own business interests atstake. The rights of the local workers to earn a living wereessentially staring us in the face,” said Ross Orr, President andCEO of BacTech. “We saw an opportunity to harmonize the goals ofproviding environmental, economic, and social opportunities thatbenefit the community, and decided to incorporate a plan that wouldminimize disruption and make optimal use of the land resourcesavailable. This agreement illustrates our commitment to operate as asocially conscious company that can co-exist with a local communityand contribute to sustainable rural development.”
The farmers will remain independent from BacTech andwill not be employees of the Company
at this time. BacTech and the workers will agree to aseries of six month contracts that will be subject to review aftereach period. In the event BacTech opts to expand the plant footprintto process considerably more concentrate, the workers would be offeredfuture employment with the Company.
The Ponce Enriquez mining area is characterized by veryhigh grades of refractory arsenopyrite-rich material. BacTech will continue to selectively negotiate for the purchase of additional high gold/arsenic concentrates. Theintent is to return local miner compensation back to previous paymentlevels prior to severe price declines resulting from Chinesegovernment-directed import taxes placed on inbound arsenic goldconcentrates. Presently, area miners have no choice but to selltheir production at reduced prices to offshore buyers. BacTech intendsto eliminate financial penalties charged for arsenic and consequentlypay better prices for the miners’ material.
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 gold ore (Arsenopyrite). The Company’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, 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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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
In total, there are over 90 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 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, nickel and copper) smartly and safelyremove and 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:172,025,558
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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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