(TheNewswire)
Adds $4 Million in Assets to BalanceSheet
Toronto, Canada, May 31, 2024 – TheNewswire – BacTech EnvironmentalCorporation (“BacTech" or "the Company") hasannounced the signing of a Letter of Intent (“LOI”) with SilverCrown Royalties (“SCRI”) for the sale of a portion of itsanticipated annual silver production. The silver will be produced as aby-product of its planned bioleach gold production in Tenguel,Ecuador.
Under the terms of the LOI, BacTech will deliver 90%,but no less than 35,000 ounces of silver per annum for a period of tenyears. The key terms of the agreement are outlined as follows:
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C$1.0 million worth of SCRI units upon execution of thedefinitive agreement. Each unit will consist of one common share ofSCRI and one 3-year warrant. The first tranche will be 2,000,000shares and 2,000,000 common share purchase warrants (exercise price is$0.80 for 3 years).
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C$1.0 million worth of SCRI shares upon successfulcompletion of the financing to build the Tenguel plant. For thesubsequent issuances, the price of issuance will be $0.50 or thetrailing Volume Weighted Average Price (“VWAP”) of the CommonShares, whichever is greater.
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C$1.0 million worth of SCRI shares at the onset ofconstruction.
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C$1.0 million worth of SCRI shares at the commencementof production.
The transaction is subject to due diligence and thesigning of a definitive agreement, with the closing expected withinthe next three months. SCRI shares are anticipated to listed to tradein the third quarter of this year. It is expected that each tranchewill have a 4-month hold period.
“Given the relatively low contribution of silver toBacTech’s revenue, we deemed it prudent to monetize it and add$4 .0 million in assets tothe Company's balance sheet. At current silver prices (~US$30), theexpected annual revenue for the first phase is approximately$1,050,000, accounting for 1.3% of total revenues. Essentially, aslong as we hold the shares in SCRI, we will remain exposed to anyincreases in the price of silver,” concluded Ross Orr, President andCEO of BacTech.
BacTech anticipates gold production ranging between31,000 and 35,000 ounces per annum, along with silver productionranging between 45,000 and 50,000 ounces from the project’s firstphase. The second phase, expected to increase throughput fourfold,will significantly boost the production of both metals.
BacTech continues to work with interested parties tofinance the construction of the plant. All of the necessary permitshave been issued including the Environmental Impact Study and theConsultation permit. Construction time is estimated to be 12-14 monthsfrom receipt of the funding.
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 can neutralize toxic concentrates and tailings while also creatingprofitable opportunities. The company is publicly traded on severalstock exchanges, including the CSE, OTCQB, and Frankfurt StockExchange.
About Silver Crown Royalties
Founded by industry veterans, SCRi is a pre-IPO stagerevenue-generating silver-only royalty company focusing on silver asbyproduct credits. SCRi aims to minimize the economic impact on miningprojects while maximizing returns for shareholders. SCRi presently hastwo sources of revenues and continues to build on this foundation,targeting additional operational silver-producing projects.
Stock Option Grant
Additionally, pursuant to the Company’s Stock OptionPlan, the Company has granted on May 31,2024 , stock options (the “ Options “) tocertain directors, officers, and employees to purchase an aggregate of 1,900 ,000 common shares (the “ Optioned Shares ”) of the Company at anexercise price of $0.10 per Optioned Share for a period of five years from the dateof grant. Some of these options replacepreviously granted, now expired, options. Subsequent to the grant of such Options, an aggregate amountof 4,453,883 commonshares of the Company remains available for issuance under theCompany’s stock option plan. Total optionsoutstanding
For further informationcontact:
Ross Orr
President & CEO, BacTechEnvironmental Corporation
416-813-0303 ext. 222,
Email: borr@bactechgreen.com
Website: https://bactechgreen.com/
Investor Presentation: https://bactechgreen.com/investors/
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Special Note RegardingForward-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.
The Canadian Securities Exchange (CSE) has not reviewedand does not accept responsibility for the adequacy or the accuracy ofthe contents of this release.
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