BacTech Announces Investment Protection Agreement with Ecuador Government
BacTech Environmental Announces Investment Protection Agreement
Signing with Government of Ecuador
Groundbreaking agreement guarantees investor rights and pledges investment stability;
Financial protection and 12-year income tax exemption secured for Tenguel project
TORONTO, ON, May 2, 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 r emediation solutions for precious
metal and critical mineral recovery, is pleased to announce a historic Investment Protec tion
Agreement ("IPA") for its Tenguel gold recovery/arsenic stabilization project has been signed with
the Government of Ecuador.
This groundbreaking agreement was signed and executed by Julio José Prado, Ecuador’s Minister
of Production, Foreign Trade, Investment & Fisheries on April 28, 2022, in Quito. Countersigning
on the Company’s behalf was Bernardo Brito, BacTech’s Country Manager. The IPA terms
explicitly cover both BacTech’s prior and forthcoming investment commitments in Ecuador of up
to US$95.5 million in plant construction and gold production activity through 2024. The agreement
also extends to any additional investments made by BacTech during the term, including potential
plant and operations expansion.
Under the IPA agreement, the Ecuadorian State has granted BacTech and its 100% owned
Ecuadorian subsidiary, BacTechverde S.A.S., the applicable protections and guarantees in
accordance with the O rganic Code of Production, T rade and I nvestments and Organic Law for
Productive Promotion, Investment Attraction, Employment Generation, and Fiscal Stability.
Specific protections relate to investor rights and guarantees such as: guarantee of non-
discrimination; right to property; freedom of production and marketing of goods and services, free
transfer abroad of profits, freedom of import and export operations; tax stability , including
exemption from Income Tax for 12 years; and arbitration for dispute resolution.
The process of entering into this IPA comes on the heels of BacTech recently receiving official
plant construction permit approval f rom the Ministry of Energy and Mines, and was greatly
accelerated under the leadership of Guillermo Lasso´s administration, particularly following the
issuance of Decree 151, which defined the national Mining Action Plan. It involved direct
negotiations with the Ministry of Production, Foreign Commerce, Investments and Fishing. In
addition, approvals were obtained from the Strategic Committee for Promotion and Attraction of
Investments, as well as a technical feasibility and legal report of the investment project from the
the Ministry of Energy and Mines.
Ross Orr, CEO of BacTech Environmental Corp. said: "This Agreement truly underscores the level
of dedication and assistance that the Ecuadorian Government continuously brings to our Tenguel
project, along with a resolve to support long- term investment and advancements with green
resource development. BacTech investors will enjoy increased protection in their investment as a
result of this significant milestone Agreement, and we remain equally committed to mobilizing
social and environment al sustainability efforts in Ecuador. Delivering against the triple bottom
line of People, Planet, Profit will continue to guide how BacTech partners and operates.”
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.
This press release has been reviewed by Dr. Paul C. Miller Ph.D. Chem. Eng. C.Eng. MIMM.,
considered a qualified expert for reporting purposes.
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:
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 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 es timates 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 re ader is cautioned
not to place undue reliance on forward-looking statements.
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.