BacTech Environmental Signs Letters of Intent to Supply Gold Concentrates to Tenguel Bioleaching Operation
Wednesday, July 13th, 2022
BacTech Environmental Corporation (CSE: BAC) and (US-OTC:BCCEF) is a pioneering, environmental technology company that has developed and commercialized a proprietary technology to remediate highly toxic tailing areas resulting from abandoned mining operations.
ContactLOI’s propose 58 tpd of minimum 50 gpt concentrates to be supplied
TORONTO, ON, July 13, 2022 – BacTech Environmental Corporation (CSE: BAC, OTC:
BCCEF, FSE: 0BT1) (“BacTech” or the “Company”), a commercially proven, environmental
technology company delivering eco-friendly bioleaching and remediation solutions for precious
metal and critical mineral recovery, is pleased to announce that it has signed letters of intent
(“LOIs”) with several government-licensed gold mining cooperatives for initial orders to deliver
up to 58 tonnes per day of arsenopyrite gold concentrates at a cutoff grade of 50 grams per tonne.
The Company will negotiate final commercial terms and execute definitive supply agreements
prior to commissioning of the Tenguel bioleaching plant. The agreements cover production from
3 mines/processors and were signed on July 5th and 12th.
Strategically situated to meet the processing needs of 90+ area government-licensed gold mining
producers and companies, the project will be a regional hub for BacTech’s proposed bioleaching
processing plant for gold and silver recovery. Ecuador’s Ministry of Energy and Non-Renewable
Resources has already issued a permit for plant construction, while preliminary Detailed
Engineering plans project an initial 20-acre plant footprint that allows for future expansion
opportunities without disruption to existing production.
“We’re taking proactive steps wherever we can to help solidify our plans and ensure that a steady
stream of quality material will continuously feed this operation. With that said, we will not
purchase any concentrates that have been pre-treated with cyanide or mercury,” said Ross Orr,
President and CEO of BacTech Environmental. “We intend to capture the majority of the local
small miner market by delivering environmentally friendly processing that supports fair business
practices. We’re excited to showcase the sustainable benefits of bioleaching on a global stage
that ultimately brings ethically sourced gold to market.”
The Ponce Enriquez mining area is characterized by very high grades of refractory arsenopyrite-
rich material. BacTech will continue to selectively negotiate for the purchase of additional high
gold/arsenic concentrates. The intent is to return local miner compensation back to previous
payment levels prior to severe price declines resulting from Chinese government-directed import
taxes placed on inbound arsenic gold concentrates. Presently, area miners have no choice but to
sell their production at reduced prices to offshore buyers. BacTech intends to eliminate financial
penalties charged for arsenic and consequently pay better prices for the miners’ material.
The Letters of Intent are non-binding and final commercial terms have not been executed in a
definitive supply agreement.
About the Tenguel – Ponce Enriquez Bioleaching Project
BacTech is planning to build a new owner-operated bioleaching facility in Tenguel, 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, assuming a base gold price @ $1,600 per ounce:
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
In total, there are over 90 small mines operating in the area. 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, nickel 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:
Ross Orr
President & CEO, BacTech Environmental Corporation
416-813-0303 ext. 222,
Email: borr@bactechgreen.com
Website: https://bactechgreen.com/
Investor Presentation: https://bactechgreen.com/investors/
Additional Press Releases & News:
- Find BacTech Environmental at PDAC, Booth #3239 March 3-6, 2024 14-02-24
- BacTech Provides a Follow-Up Update on Sudbury Pyrrhotite Tailings R&D Project 16-01-24
- BacTech Provides Financing Update 19-12-23
- BacTech Provides Update on Sudbury Pyrrhotite Tailings R&D Project for Clean Recovery of Metals 12-12-23
- 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