(TheNewswire)
TORON TO, ON – TheNewswire - March 22, 202 2 – BacTech EnvironmentalCorporation (CSE:BAC ) , ( OTC: BCCEF ) , ( FSE:0BT1) (“ BacTech ” or the “ Company ”), acommercially proven environmental technology company deliveringeffective and eco-friendly bioleaching and remediation solutions, ispleased to provide a corporate update and progress report on itsTenguel – Ponce Enriquez bioleaching plant and project.
Key highlights include:
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Closing date for the 100-acre plant property located inTenguel set for April 9, 2022;
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Environmental and construction permitting expected tobe approved by August 2022 with construction to commence shortlythereafter;
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COO David Tingey now based in Guayaquil, workingclosely with EPCM on detailed engineering report;
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Plant debt financing process is underway, with severalexpressions of interest being discussed and/or are under review; and
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Second round closing on Private Placement Offeringanticipated later this month.
“Having just returned from a week of site visits andengaging Ministers of various departments related to our project andESG initiatives in Ecuador, I am pleased to say that we continue toreceive positive support as we introduce our plans to enhance thesustainability of gold mining,” said Ross Orr, President, and CEO ofBacTech Environmental. “The foundation for a profitable businesspartnership has been set and interest level from area miners andcommunity stakeholders for plant development remains very strong.Everyone looks forward to a return to prices received prior to theimposition of the Chinese arsenic import tax onconcentrates.”
Tenguel Plant Update
On April 9, 2022, BacTech intends to close on its100-acre (40 ha) property in Tenguel. Sitting adjacent to PonceEnriquez, the property is well-situated to meet the needs of the 90+area mining cooperatives and companies which will supply and feedBacTech’s proposed processing plant.
Kate Castro is leading BacTech’s permitting process,with an estimated approval date of August 2022. Bernardo Brito,BacTech’s Country Manager and mineral concentrates expert, remainsactively involved with the Company's in-country negotiations,contractual agreements, potential importation tax exemptions, andlogistics.
“Our initial projected plant footprint will use only20 acres of the property, so we have made the decision to allow localcocoa farmers to remain rent-free and tend to the 80 acres of cocoatrees keeping all proceeds sold from the property,” Orr continued.“Our actions are not only generating community goodwill, but we’realso developing important trusted relationships that will helpsafeguard and look after plant operations.”
Financing and Private PlacementUpdate
BacTech has begun the process of arranging the debtfinancing for the proposed plant. Since the publishing of the BankableFeasibility Study, the Company has received numerous expressions ofinterest due to the outstanding economics of the project. BacTech alsoanticipates announcing a second closing later this month with respectto its recently announced unique unit offering plus royalty financing.
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 the royalty will be cancelled, and the investor willretain 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’s high expectations not only for environmentalstandards, but also for the highest standards in all ESGconsiderations.
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 whether because of new information, results,future events, circumstances, or if management’s estimates oropinions should change, or otherwise. There can be no assurance thatforward-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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