00:12:19 EDT Wed 22 May 2024
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or Name

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Bactech Environmental Corp (2)
Symbol BAC
Shares Issued 185,360,333
Close 2023-11-17 C$ 0.065
Market Cap C$ 12,048,422
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Bactech receives final ESIA permit OK in Ecuador

2023-11-20 13:01 ET - News Release

Mr. Ross Orr reports


Bactech Environmental Corp. has officially been granted the environmental licence by Ecuador's Ministry of the Environment. This approval allows Bactech to move forward with plans to develop a world-class bioleach processing facility in Tenguel and follows the successful completion of the community consultation process and subsequent sign off by the Minister of the Environment.

With all major permits now secured and in place, Bactech will finalize the terms with Analytica Securities to launch the previously announced $20-million (U.S.) green/social bond issue to finance the construction of the bioleach plant at Tenguel. Of the total funds raised, approximately $17-million will be allocated to the capital portion of the bioleaching facility construction, with the remaining $3-million dedicated to financing the purchase of concentrates from local miners and supporting the local economy.

Ross Orr, president and chief executive officer of Bactech, expressed his enthusiasm: "Our shareholders are aware that this significant project has been years in the making, and we are very happy to announce the approval of our permits. We would like to commend Minister Davilos (Environment) for his efforts in achieving this milestone for Bactech. With the full support of the local community and government stakeholders, we can confidently proceed with the plant financing."

The company has also indicated its deliberation on a private placement of common shares with the aim of securing extra equity for the project and bolstering its working capital.

Once completed, the facility is expected to become South America's largest and most efficient bioleaching plant. It will utilize naturally occurring bacteria that are harmless to both humans and the environment for treating gold- and silver-containing materials with high arsenic levels.

To ensure transparency and adhere to global best practices, Bactech has launched its sustainable bond framework for issuing green and social bonds, aligning with the International Capital Market Association's (ICMA) green bond principles (GBP) 2021 and social bond principles (SBP) 2023. Additionally, the company proudly received an independent second party opinion (SPO) from Moody's Investors Service, granting Bactech a sustainability quality score of SQS2 (very good), recognizing the company's significant contribution to sustainability.

Bactech remains steadfast in its commitment to achieving environmental and social objectives while delivering long-term value to shareholders and stakeholders. The green/social bond offering marks a significant step in this direction.

About the Tenguel-Ponce Enriquez bioleaching project

Bactech plans to construct an owner-operated bioleaching facility in Tenguel, Ecuador, a region known for its association with arsenic in sulphide gold ore (arsenopyrite). The company intends to build a 50-tonne-per-day bioleach plant capable of treating high gold/arsenic material. Such a plant, processing feed with 1.75 ounces of gold per tonne, similar to what local miners provide, would yield approximately 31,000 ounces per year. The modular plant designs allow for expansion without disrupting continuing production. Bactech has also signed an agreement with the government for a phase 2 plant that would add 150 to 200 tpd of capacity, producing more than 100,000 ounces per annum.

Key economic highlights, assuming a base gold price of $1,600 per ounce, include:

  • Pretax NPV (net present value with a 5-per-cent discount rate) of $60.7-million;
  • Pretax IRR (internal rate of return) of 57.9 per cent;
  • Annual gold production of 30,900 ounces;
  • Capital cost of $17-million;
  • Bioleach operating cost of $212 per tonne;
  • Pretax earnings prior to employee bonus of $10.9-million annually;
  • Estimated local employee bonus pool of $1.64-million.

The area hosts over 100 small mines, and Bactech is actively exploring the possibility of establishing modern bioleaching facilities in other regions of Ecuador, Peru and Colombia. The company aims to collaborate with national and local governments, non-governmental organizations (NGOs), and other stakeholders to finance these projects and ensure adherence to high environmental and ESG (environmental, social and governance) standards.

About Bactech Environmental Corp.

Bactech Environmental is a company that specializes in environmental technology. It 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 ecofriendly 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.

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