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Mining Deal Club

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BacTech Environmental Corp.

BacTech Environmental Corp.



BacTech Environmental Corp. (CSE:BAC)

Description of Business: BacTech is a Toronto-based environmental technology firm that trades on the Canadian Securities Exchange under the Symbol “BAC”. BacTech has developed and commercialized a proprietary bioleaching technology that eliminates the use of mercury and the release of arsenic during processing in the artisanal gold mining industry. It can also be used to remediate highly toxic mine tailings in a way that eliminates acid rock drainage. In both applications, BacTech recovers precious and base metals that can be sold at a price sufficient to fully offset the remediation costs plus generate a significant profit.

The Market: There are two primary markets for BacTech: past mine sites with acid generating tailings and processing high arsenic material produced by artisanal (small) miners. Initially, BacTech will focus on past mine cleanup as it has a revenue-sharing agreement with the Bolivian government to remediate tailings from a mill complex at Telamayu. Through simple and inexpensive gravity/flotation the acidgenerating sulphides will be removed and tin, silver and copper will be produced as a result. Telamayu is 1 of 26 projects that were offered to BacTech initially. The long-term primary market for BacTech will be the Artisanal Gold Mining industry, which employs 30 million people worldwide and produces 10 million ounces of gold annually. BacTech offers a commercially-proven processing technology that eliminates the need for mercury, stabilizes the contained arsenic and achieves extremely high recovery rates for gold (94-96%). BacTech has identified southern Ecuador as an area in dire need of bioleaching. Ponce Enriques province in Ecuador is an environmental mess because of mercury use for gold extraction. The introduction of flotation for the arsenopyrite mined by artisanals provided an answer to eliminate mercury use but the concentrates, although high grade in gold, also contain more than 10% arsenic. In other words, a concentrate with limited buyers due to the arsenic. Presently the gold concentrates produced are sold to foreign buyers for 50% of the gold-in-concentrate value due to the arsenic and nothing is paid for the associated metals. Right now, bioleach test work is underway at Laurentian University in Sudbury, Canada on 150 kgs of arsenopyrite sourced from floatation plants in Ponce Enriques. The Ontario government provided a grant of $75,000 towards the study of arsenic neutralization given the same problems exist in the Province. Results will start to be released in January/2018. If BacTech can set up a new bioleach plant each year, funded by it’s own cash flow, for the next five years, it would generate revenues of over $150 million in year five with an EBITDA of over $50 million. This in turn, would give the firm a market capitalization of over $250 million CAD (5X cash flow), a 75x increase from its current market cap.

The Competition: Only two companies in the world use bioleaching technology. One of them is Gold Fields, and they have developed 22 bioleach plants for their own operations and exclusively to recover gold. BacTech is the only other bioleach company and the only company in the world that recovers a full range of precious and base metals. It has licensed/built three plants to date that recovered up to 95% of metal-in-concentrates.  

The Management Team: The company is managed by four key individuals:
• Ross Orr, President and CEO, has spent 25+ years in corporate development, finance and public company management, including 10 years developing BacTech as CEO. 
• Louis Nagy, Chief Financial Officer, is a CA with 28 years of accounting experience and was the CFO/controller for several small to medium sized public and private firms. 
• Dr. Paul Miller, VP, Technology & Engineering, has 25+ year’s experience in bio-leaching and commercial applications and has led all technical aspects of BacTech projects since 1996. 
• Ian McLean, COO, has built many plants related to mining. He was formerly with DENM Engineering.

The management team is supported by a skilled Board of Directors, which includes a recognized leader in mining industry research (John Gingerich), a global trader of precious metals (Walter Cimowsky), the executive chairman of a gold mining company (Donald Whalen), and a former prosecutor for the Ontario Securities Commission (Jay Naster).

The Environmental Impact: BacTech demonstrates exemplary environmental performance in three ways. Firstly, it removes acid-generating sulphides and stabilizes the deleterious elements (including and especially arsenic). Secondly, it processes artisanal gold without the use of highly-toxic mercury. Thirdly, it halts the use and release of mercury and arsenic into the surrounding environment. 

 For more information, please visit www.bactechgreen.com 

Corporate Presentation

BAC Presentation Aug2017