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BacTech Completes First Tranche of Unique Financing

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BacTech Completes First Tranche of Unique Financing

 

 

 

 

 

BacTech Environmental Corporation (CSE: BAC) (OTC: BCCEF) (FSE: 0BT1) a commercially proven environmental technology company delivering effective and eco-friendly bioleaching and remediation solutions, is pleased to report the closing of the first tranche of its previously announced non-brokered private placement offering. The Company has closed on the first tranche funds for gross proceeds of $1.21M at a price of $0.20 per Unit.

The Company continues to work with investors and financial institutions to process all orders and close the Offering.

 

Ross Orr, CEO of BacTech Environmental Corp. said: “The response to this unique financing has been nothing short of outstanding. Even with the turmoil in the markets we expect to reach our goal of $3M. With this funding, we will secure the property for the plant, order longer lead time construction materials and, of course, keep the permitting rolling. I couldn’t be happier, and I thank all shareholders for their continued support.”
 

About the Tenguel – Ponce Enriquez Bioleaching Project

 

BacTech is planning to build a new owner-operated bioleaching facility in Tenguel, near Ponce Enriquez, Ecuador, in a region where arsenic is associated with gold ore (Arsenopyrite). The Company’s plan is to build a 50 tpd bioleach plant capable of treating high gold/arsenic material. A 50 tpd plant, processing feed of 1.75 ounces of gold per tonne, similar to feeds available to the Company from local miners, would produce approximately 31,000 ounces per year. Plant designs are modular and can be expanded without affecting ongoing production. The total concentrate market in the Ponce Enriquez area is estimated to be between 200 and 250 tonnes per day, allowing for increased throughput potential with a larger plant.

 

Key economic highlights:

  • Pre-tax NPV (Net Present Value with 5% discount rate) of $60.7M
  • Pre-tax IRR (Internal Rate of Return) of 57.9%
  • Annual Gold Production of 30, 900 ounces
  • Capital Cost of $17M
  • Bioleach Operating Cost of $212 per tonne
  • Assumed Purchase Prices of Concentrate – 65% of the contained gold value
  • Pre-tax Earnings Prior to Employee Bonus – $10.9M annually
  • Estimated local employee bonus pool – $1.64M
  • Payback (70% DEBT) – 2 years

 

In total, there are over 90 small mines operating in the area. BacTech intends to return local miner compensation back to previous payment levels, prior to a sweeping price reduction imposed by Chinese buyers due to recent import levies on arsenic/gold concentrates entering China. BacTech continues to investigate the prospects of establishing additional modern bioleaching facilities across other areas of Ecuador, Peru, and Colombia. Where possible, the Company will partner with national and local governments, non-governmental organizations (NGOs) and others to assist with the funding of these projects and ensure that they meet the Company’s high expectations not only for environmental standards, but also for the highest standards in all ESG considerations.
 

About BacTech Environmental Corporation

 

BacTech is a proven environmental technology company, delivering effective and eco-friendly bioleaching and remediation solutions to commercial operations to process and recover preferred metals (gold, silver, cobalt, and copper) smartly and safely remove and transform harmful contaminants like arsenic into benign EPA-approved products for landfill. Tapping into numerous environmental and economic advantages of its proprietary method of bioleaching, BacTech uses naturally occurring bacteria, harmless to both humans and the environment, to neutralize toxic mining sites with high-pay potential.

Posted March 1, 2022

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