A commercially proven environmental technology company that delivers eco-friendly bioleaching and remediation solutions report this week that it had closed the first tranche of its non-brokered private placement offering for gross proceeds of $1.21 million (CAD) at $0.20 per unit.
BacTech Environmental Corporation (CSE: BAC, Forum) 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). BAC added that there are more 90 small mines operating in the area.
In
a news release, BacTech Environmental Corp. CEO Ross Orr called the response to this unique financing has been nothing short of outstanding.
“Even with the turmoil in the markets we expect to reach our goal of $3M. With this funding, we will secure the property for the plant, order longer lead time construction materials and, of course, keep the permitting rolling. I couldn’t be happier, and I thank all shareholders for their continued support.”
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
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.
The company added that it will continue to investigate the prospects of establishing additional modern bioleaching facilities across other areas of Ecuador, Peru, and Colombia.