BacTech Announce $3.0M Private Placement
BacTech Announces $3 Million Non-Brokered Private Placement at
Premium to Market Price
Unique Offering Includes Royalty Payments to Purchasers
TORONTO, ON February 14, 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,
is pleased to announce a non- brokered private placement offering (the “Offering”) of units (the
“Units”) for maximum gross proceeds of $3,000,000. The Company has expressions of interest for
the total amount of the financing.
The issue price of the Units will be $0.20 per unit. Units are comprised of (i ) one (1) common
share in the capital of the Company (or its successor) (hereinafter a “Share” and collectively, the
“Shares”), (ii) one (1) transferable common share purchase warrant (each, a “Warrant” and
collectively, the “Warrants”). Each whole Warrant shall entitle the holder thereof to acquire one
(1) additional common share (each a “Warrant Share”) in the capital of the Company (or its
successor) at a price of $0.30 per Warrant Share until the date that is twenty-four (24) months from
the Closing Dat e (as defined herein) . And (iii) a Royalty Certificate representing the Royalty
Incentive as defined below; the Royalty Certificate may be transferred subject to the approval of
the Company.
Royalty Incentive
The Company will offer a royalty to participants, once the Tenguel - Ponce Enriquez facility in
Ecuador, as described in the updated Feasibility Study dated January 31, 2022 (the “Feasibility
Study”) is fully operational. This royalty will be based upon the revenues generated by the
Company’s proposed Tenguel - Ponce Enriquez facility to all investors who subscribe for Units
hereunder. For each $1.0 million of the Offering, the Company will offer a 0.5% royalty. The
cumulative royalty payment will be limited to a maximum of twice (i.e. , “200%”) the original
amount invested in Units (the “Royalty”). The Royalty will be represented by a certificate (the
“Royalty Certificate”) in the form of the Royalty Certificate included in the subscription
documentation.
Assumptions, based on the updated Feasibility Study, suggest an amount of $3,532 will be paid
annually to the holder of the Royalty Certificate on every tranche of $10,000 invested in the Units,
until an aggregate of twice ( i.e.: “200%”) of the amount invested in the Units is paid as the
cumulative Royalty payment maximum, subject to the Early Warrant Exercise Incentive, as
described below.
The Company will increase the aggregate Royalty payments by an additional 0.50% per $1.0
million of the amount subscribed in this Offering solely for those investors who exercise their
Warrants issued in connection with thi s Offering within six months of the Closing Date. The
cumulative Royalty payment maximum will increase by the amount of warrant proceeds received
pursuant to the terms of the Early Warrant Exercise Incentive.
“Our updated Feasibility Study illustrates the significant long-term investment potential that this
project represents for all shareholders,” said Ross Orr, President and CEO. “The projected margins
are exceptional, giving us the flexibility to structure a deal that we believe will inject capital into
the Company on favourable, less dilutive terms. Volt Strategic has been an invaluable partner in
helping to pull these efforts together , as we set our sights on new milestones and work towards
completing this unique project.”
The net proceeds of the Offering will be used by the Company for ongoing working capital, land
acquisition and the Company’s capital contribution for advancing the Company’s Tenguel – Ponce
Enriquez, Ecuador bioleaching project as outlined in the Feasibility Study.
The Common Shares and the Warrants will be subject to a statutory four month hold period under
the applicable securities laws and in such case the certificates evidencing the Shares and the
Warrants will bear a legend to that effect, as applicable. Closing of the Private Placement Offering
is expected to occur on or about February 28, 2022, and is subject to certain conditions, including
but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including
the approval of the CSE.
The Units will be offered and sold by private placement in Canada to "accredited investors" within
the meaning of Regulation 45-106 respecting Prospectus Exemptions and other exempt purchasers
in each province of Canada and such other jurisdictions within and outside of Canada as are agreed
to by the Company.
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 1.75 ounces of gold per tonne of feed, 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.
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 publ icly 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: [email protected]
Website: https://bactechgreen.com/
Investor Presentation: https://bactechgreen.com/investors/
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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 variation s (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, uncertainti es 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, circumstance s, 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 stateme nts. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements.
Shares outstanding: 157,455,558
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.