There are thousands of abandoned mines and sites around the world that display unbelievably high levels of contamination from toxins used in and extracted during the mining process. BacTech Environmental Corporation will apply their patented BACOX bioleaching technology to the processing of toxic, arsenic-laden mine tailings. An added benefit of bioleaching, in addition to stabilizing arsenic and capturing heavy metals, is that it oxidizes sulphides in mine tailings, thereby eliminating a major source of acid mine drainage. The technology also recovers precious and base metals from tailings for sale to market. Bioleaching is an environmental clean up solution that also creates a profit.


Latest News Release

Bactech Seeks to Raise $500,000 in a 2 Year Debenture Including a Net Smelter Royalty


Bactech Environmental Corp. will seek to raise up to $500,000 through a non-brokered private placement in the form of a unique debenture offering open only to accredited investors.


The two-year new debenture will carry an interest rate of 12 per cent with interest to be paid annually and 1,333,333 warrants per $100,000 debenture investment exercisable at a price of 7.5 cents per warrant entitling the holder to one common share of Bactech and expiring three years from closing; in addition, the new debenture will be accompanied by a net smelter royalty (NSR) to be paid annually from the cash flow generated at the company's Telamayu tailings project in Potosi state, Bolivia .


The Telamayu project is the object of an association contract between COMIBOL, the Bolivian state mining company, and Bactech. The association contract has the following terms:

  • The Telamayu tailings were created through the processing of mineralized material from various mines nearby. The tailings contain high-grade tin, silver and copper verified through 57 drill holes and subsequent assaying (National Instrument 43-101 resource calculation).
  • Bactech will provide 100 per cent of the capital to retrofit an existing mill at Telamayu, a milling town located in Potosi state, to reprocess the tailings and recover metal in the tailings.
  • Bactech will receive 100 per cent of the cash flow from the project until such time the project financing debt is repaid or 18 months from the onset of production, whichever happens first;.
  • After repayment of the project financing debt, or 18 months, the net income from the project is split 55 per cent/45 per cent in COMIBOL's favour.
  • At this stage, the company estimates the capital needed will be in the $7-million-(U.S.)-to-$8-million-(U.S.) range, but the number will be confirmed through final engineering

About the NSR


As mentioned above, the NSR accompanying the new debentures will be based on the net revenues received by Bactech and its affiliate (EMABSA) from the Telamayu project from the production of mineral concentrate sold with the main metal component being tin, silver and copper, less charges for treatment and handling. For greater clarity, the NSR will only be paid on Bactech's share of the annual revenue (less the aforementioned deductions).


The decision on moving forward with the Telamayu project is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but, given the nature of the project, is based on the sampling and metallurgical work done to date on the Antiguo tailings of the Telamayu project, which is part of a scoping study that is currently in progress. Bactech's qualified person on the Telamayu project, Dr. Paul Miller, is conducting the necessary metallurgical tests in conjunction with Jose Cordova and prepared the flowchart with the process required in remediating the specific makeup of the Antiguo tailings and maximizing the recovery of the economic value from the mineralized materials. The lack of a full feasibility study of mineral reserves would generally be a reason to avoid a production decision, since the information in a feasibility study would allow the identification of economic risks and technical risks necessary to avoid the failure of a project. At this point, the scoping study conducted and recovery rates which have been previously disclosed (see press releases of Sept. 12, 2017, which announced the completion of the NI 43-101 report, and Oct. 25, 2017, announcing the first stage metallurgical test results) provide the company sufficient comfort to move forward with the Telamayu project.


For purposes of illustration only, the following details the expected returns from the NSR based on production from the Telamayu project.


For every $100,000 (Canadian) of new debentures issued, there will be a 0.50-per-cent NSR paid annually in U.S. funds. Fractional NSR amounts will be issued with a minimum investment of $10,000. Assuming the annual net revenue to Bactech is $10-million (U.S.), the holder of a $100,000 (Canadian) debenture would receive $50,000 (U.S.) annually in NSR payments. A buyback of the NSR will be offered within 180 days after the expiry of the debenture for an amount equal to the subscription amount of the new debenture. The new debenture will be repaid in full in two years and the holder retains the NSR until the stockpile is depleted, estimated to be approximately five years.


The NI 43-101 preliminary economic assessment announced on Sept. 12, 2017, and the first-stage metallurgical reports announced on Oct. 25, 2017, are the basis for the certain assumptions that are considered reasonable under the circumstances. The example above has been limited to the estimated life of the tailings. This example is only intended to be illustrative of the application of the NSR component of the new debenture and is not valid for any other purpose.


The above example is only for purposes of illustration and should not be construed as a representation of future returns or a forward-looking statement relating to the Telamayu project.


President and chief executive officer Ross Orr comments: "It is no secret that the junior resource sector is fighting some very strong headwinds with so many other options available to investors now. Given the interest in the previous debenture offerings, which are now concluded, we are pleased to be able to offer the new debenture with these innovative characteristics to our investor base."



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This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.


Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified.


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Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


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