BacTech announces CBOE approval of Royalty Transaction with Silver Crown
TORONTO, ON, November 2 5, 2024 – BacTech Environmental Corporation
(“BacTech”) (CSE:BAC, OTCQB:BCCEF) is pleased to announce the CBOE
approval of a royalty sale to Silver Crown Royalties Inc. (“Silver Crown,”
“SCRi,” or the “Company”) (CBOE:SCRI; OTCQX:SLCRF; FRA:QS0), as
outlined in the definitive royalty purchase agreement (the “Agreement”)
announced on October 28, 2024.
Under the Agreement, Silver Crown acquires a silver royalty on BacTech’s
planned bioleaching facility in Tenguel, Ecuador (the “Project”). The 10-year
term for the annual royalty equates to the cash equivalent of the greater of (i)
90% of the silver processed at the facility , or (ii) minimum annual payment of
35,000 ounces of silver. Royalty payments become due on a quarterly basis after
one year from the commencement of commercial operation of the Project.
The total purchase price for the royalty includes:
1. C$1,000,000 in SCRi units , issued at a deemed value of C$10.00 per unit.
Each unit comprises one common share of SCRi and one warrant to purchase an
additional common share at C$16.00 within 36 months.
2. 100,000 special warrants, exercisable into 100,000 SCRi common shares upon
BacTech securing financing for the Project.
3. 200,000 special warrants, exercisable into 200,000 SCRi common shares
upon achieving commercial production. Notably, Silver Crown’s press release
on October 28, 2024, incorrectly stated that the 300,000 special warrants were
exercisable into units rather than common shares. The partnership with Silver
Crown Royalties significantly impacts BacTech's financial outlook in several
ways:
1. Strengthened Balance Sheet: BacTech can receive CAD$4 million in Silver
Crown Royalties shares, potentially adding substantial value to its balance
sheet.
2. Upfront Capital: The agreement provides BacTech with upfront capital
through share issuances, which can be used for project development.
3. Minimal Revenue Impact: The silver royalty represents only about 1.2-1.3%
of BacTech's projected total revenues from the Tenguel plant, allowing the
company to maintain focus on its core gold recovery operations.
4. Long-term Partnership: The 10-year agreement provides a stable, long-term
relationship that could lead to future collaborations on other silver-producing
projects. Milestone-based Funding: The phased issuance of shares aligns
with BacTech's project development milestones, providing additional
financial support at crucial stages
5. Market Exposure: As a shareholder in Silver Crown, BacTech gains
exposure to potential upside in silver prices and Silver Crown's performance.
6. Operational Focus: By monetizing its silver production, BacTech can
concentrate on its core bioleaching technology and gold recovery operations
while still benefiting from silver production.
This partnership allows BacTech to unlock value from its silver byproduct while
maintaining its focus on environmental technology and gold recovery, potentially
improving its overall financial position and project development capabilities.
ABOUT BACTECH
BacTech Environmental Corporation is a company that specializes in
environmental technology. BacTech uses a process called bioleaching to recover
metals like gold, silver, cobalt, nickel, and copper while also safely removing
harmful contaminants like arsenic. This process is eco-friendly and uses naturally
occurring bacteria that are safe for both humans and the environment. By using
its proprietary method of bioleaching, BacTech can neutralize toxic concentrates
and tailings while also creating profitable opportunities. BacTech is publicly
traded on several stock exchanges, including the CSE, OTCQB, and Frankfurt
Stock Exchange.
ABOUT SILVER CROWN ROYALTIES INC.
Founded by industry veterans, Silver Crown is a publicly traded, silver royalty
company. SCRi currently has four silver royalties of which two are revenue -
generating. Its business model presents investors with precious metals exposure
allowing for a natural hedge against currency devaluation while minimizing the
negative impact of cost inflation associated with production. SCRi endeavors to
minimize the economic impact on mining projects while maximizing returns for
shareholders.
For further information, please contact:
Ross Orr
President and CEO
Telephone: 416-346-5529
Email: [email protected]