BacTech Environmental Announces an Additional $1.9 Million into Treasury
Thursday, April 21st, 2022
Second Tranche of Royalty Units and $1M Investment Through Convertible Debenture Now Secured
TORONTO, ON, April 21, 2022 – BacTech Environmental Corporation (CSE: BAC, OTC: BCCEF, FSE: 0BT1) (“BacTech” or the “Company”), a commercially proven environmental technology company delivering effective and eco-friendly bioleaching and remediation solutions, reports receiving binding subscription agreements for a Second tranche, adding $900,000 to its non-brokered Private Placement being offered at a price of $0.20 per Unit. Gross proceeds of $1.21M, also at a price of $0.20 per Unit, were closed by the Company in its earlier initial tranche.
In addition, the Company is pleased to announce that it has arranged for a $1M convertible debenture with an existing strategic investor. The terms of the convertible debentures call for a conversion at $0.15 per share, an annual interest rate of 8% and a term of 18 months.
Ross Orr, CEO of BacTech Environmental Corp. said: “With the current global events unfolding, we are happy to be adding another $1.9M in these market conditions at above market prices. Talks with interested parties continue, as the uniqueness of the financing offering still has many intrigued. To be prudent, we also created this alternate structure, and I’m pleased that this particular shareholder has chosen to increase their investment in BacTech. Investors are increasingly taking note of our full portfolio of sustainable metal recovery interests, in addition
to recognizing the sizeable potential of our lead Ecuador project.”
The Company is offering a $.20 unit comprised of one common share and one common share purchase warrant at $.30 for two years. The financing includes a 0.5% royalty for every $1M raised under the offering. The financing offers investors the chance to participate in a royalty directly as opposed to through the purchase of 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 (based on a Canadian 25% tax on the payment) the royalty will be cancelled, and the investor will retain their common shares.
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. BacTech is publicly traded on the CSE under the symbol “BAC”; on the OTC as “BCCEF”; and the Frankfurt Stock Exchange as “0BT1”.
For further information contact:
President & CEO, BacTech Environmental Corporation
416-813-0303 ext. 222,
Investor Presentation: https://bactechgreen.com/investors/
Shares outstanding: 163,805,558
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for
the adequacy or the accuracy of the contents of this release.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the
shares, nor is it a solicitation of interest from a prospective investor.
Additional Press Releases & News:
- BacTech to Raise $1M Through a Private Placement of Units 21-11-23
- BacTech Environmental Receives Final ESIA Permit Approval from Ecuadorian Government to Begin Development of Bioleach Processing Facility in Tenguel 18-11-23
- MIRARCO Secures Grant Money to Complete Pilot Testing BacTech Environmental Bioleaching IP for Nickel-Cobalt Recovery from Tailings 14-08-23
- BacTech Comments on Constitutional Court of Ecuador’s Temporary Suspension of Decree 754 03-08-23
- BacTech Engages Analytica Securities to Raise $US20M in Green/Social Bonds for the Tenguel Project 26-07-23
- BacTech Environmental Establishes Sustainable Bond Framework to Finance Ecuador Bioleach Project 24-07-23
- BacTech Environmental Joins Ontario Government Delegation at Green Expo 2023 in Mexico City and Monterrey 29-06-23
- BacTech Environmental Provides Corporate Update 16-06-23
- BacTech Environmental Engages Moneta Advisory Partners; Wall Street Veterans Marc LoPresti and Jon Najarian to Help Drive Investor Awareness Program 15-06-23
- President of Ecuador Signs Community Consultation Process Decree; Clears Path for BacTech Environmental to Pursue Final Major Permit 01-06-23
- BacTech to Present at the Sequire Investor Summit in Puerto Rico 20-04-23
- BacTech Environmental Initiates Certification Process for US$20M Green Bond Offering to Fund Bioleaching Gold Recovery Plant in Ecuador 13-04-23
- BacTech Environmental Announces First Closing of Private Placement 27-03-23
- BacTech Environmental Closes $250,000 Convertible Debenture with Strategic Investor 14-03-23
- BacTech Environmental Announces $1Million Private Placement; Retains MARS Investor Relations in Final Funding Push for Bioleaching Gold Recovery Plant Construction 13-03-23