BacTech Corporate Update Tenguel Bioleaching Plant and Project
BacTech Environmental Provides Corporate Update
and Progress Report on Tenguel Bioleaching Plant and Project
TORONTO, ON, March 22, 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 provide a c orporate update and progress report on its Tenguel – Ponce Enriquez
bioleaching plant and project.
Key highlights include:
• Closing date for the 100-acre plant property located in Tenguel set for April 9, 2022;
• Environmental and construction permitting expected to be approved by August 2022 with
construction to commence shortly thereafter;
• COO David Tingey now based in Guayaquil, working closely with EPCM on detailed
engineering report;
• Plant debt financing process is underway, with several expressions of interest being
discussed and/or are under review; and
• Second round closing on Private Placement Offering anticipated later this month.
“Having just returned from a week of site visits and engaging Ministers of various departments
related to our project and ESG initiatives in Ecuador, I am pleased to say that we continue to
receive positive support as we introduce our plans to enhance the sustainability of gold mining,”
said Ross Orr, President, and CEO of BacTech Environmental. “The foundation for a profitable
business partnership has been set and interest level from area miners and community stakeholders
for plant development remains very strong. Everyone looks forward to a return to prices received
prior to the imposition of the Chinese arsenic import tax on concentrates.”
Tenguel Plant Update
On April 9, 2022, BacTech intends to close on its 100-acre (40 ha) property in Tenguel . Sitting
adjacent to Ponce Enriquez, the property is well-situated to meet the needs of the 90+ area mining
cooperatives and companies which will supply and feed BacTech’s proposed processing plant.
David Tingey, BacTech’s COO, continues to oversee all aspects of the project from his base in
Guayaquil including implementation, permitting, engineering design, financial management, key
stakeholder engagement, reporting, and evaluation. David is working closely with EPCMC on the
detailed engineering to evaluate operations associated w ith plant construction and development,
while also identifying ways to improve expected economic performance.
Kate Castro is leading BacTech’s permitting process, with an estima ted approval date of August
2022. Bernardo Brito, BacTech’s Country Manager a nd mineral concentrates expert, remains
actively involved with the Company's in-country negotiations, contractual agreements, potential
importation tax exemptions, and logistics.
“Our initial projected plant footprint will use only 20 acres of the proper ty, so we have made the
decision to allow local cocoa farmers to remain rent -free and tend to the 80 acres of cocoa trees
keeping all proceeds sold from the property,” Orr continued. “Our actions are not only generating
community goodwill, but we’re also d eveloping important trusted relationships that will help
safeguard and look after plant operations.”
Financing and Private Placement Update
BacTech has begun the process of arranging the debt financing for the proposed plant. Since the
publishing of the Bankable Feasibility Study, the Company has received numerous expressions of
interest due to the outstanding economics of the project. BacTech also anticipates announcing a
second closing later this month with respect to its recently announced unique unit offering plus
royalty financing.
The Company is offering a $.20 unit comprised of one common share and one common share
purchase warrant at $.30 for two years. The financing includes a 0.5% royalty for every $1M raised
under the offering. The financing offers investors the chance to participate in a royalty directly as
opposed to through the purchase of a royalty c ompany’s shares. For illustra tion purposes, using
$1900 gold price and 31,000 ounces gold per annum, a royalty would be $294,500 per $1M
investment. After the investor has received a 200% after -tax return the royalty will be cancelled,
and the investor will retain their common shares.
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.
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) s martly 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”, “intend s”, “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 for ward-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 infor mation, 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: 163,805,558
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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.