BacTech Environmental Corporation (“BacTech or the Company”) (CSE:BAC, OTC:BCCEF) today announced a non-brokered private placement of units. The use of proceeds will be to advance the proposed environmental bioleach circuit to be located in Ponce Enriquez, Ecuador.
The $0.015 units consist of one common share and 1 common share purchase warrant that permits the holder to buy an additional share at $0.05 for a period of 24 months from the closing of the financing. The Company announced that it has closed the first tranche of the financing for a total of $32,000 through the issuance of 2,133,333 units. BacTech has received price protection at $0.015 for 45 days.
To recap, Ponce Enriquez, in southern Ecuador, hosts over 90 small mines, many of which produce significant amounts of arsenic along with gold. Given the ever-tightening environmental regulations globally, producers of this type of high arsenic gold concentrate can expect to receive lower prices for their product compared with cleaner concentrates. Bioleaching’s ability to stabilize high levels of arsenic will provide a local processing option that should provide better prices for their product and also add to the environmental aspects of the equation.
“ This is the beginning of BacTech’s reset after the disappointing exit from the Telamayu project in Bolivia. We have taken the approach of using smaller financings to avoid heavy dilution and to match capital raising to the results of the various steps to construction. It is our hope that each successive stage will enhance the viability of the project and lead to raising capital at higher valuations and of course, less dilution,” said Ross Orr, President and CEO of the Company.
This is a non-brokered private placement. Any qualified person interested in participating in the current funding should contact the Company directly.
Company Overview
BacTech is investigating the use of its proprietary bioleach processing technology to treat historic arsenopyrite concentrates and tailings produced in the Ponce Enriquez area of Southern Ecuador.
BacTech has agreed to participate with a group looking to reprocess the Arsenic Stockpile in Snow Lake, Manitoba as a technology part.
For further information contact: Ross Orr, President & CEO, BacTech Environmental Corporation/ 416-813-0303 ext. 222, Cell 416-346-5529 and
Email: borr@bactechgreen.com
Robin Cook, Investor Relations: 416-809-1738, Email: robin@frontiermcg.com
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Special Note Regarding Forward-Looking Statements
This news release contains “forward-looking information”, which may include, but is not limited to, statements with respect to future tailings sites, sampling or other investigations of tailing sites, the Company’s ability to make use of infrastructure around tailings sites or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified using words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether because of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Shares outstanding: 103,287,089
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