Business
BacTech Environmental Announces MoU for Funding Ecuador Bioleach Plant
Toronto, Canada – TheNewswire - January 19, 2021 - BacTech Environmental Corporation (“BacTech” or the “Company”) (CSE:BAC) (CNSX:BAC.CN) (OTC:BCCEF) today anno
About this update from Bactech Environmental Corp.
[{"type":"text","content":"Toronto, Canada – TheNewswire - January 19, 2021 - BacTech Environmental Corporation (“BacTech” or the “Company”) (CSE:BAC) (CNSX:BAC.CN) (OTC:BCCEF) today announced that it has signed a Memorandum of Understanding (“MoU”) with a private equity group in Europe to fully fund a proposed bioleach plant in Ecuador. The MoU, subject to completion of due diligence, outlines how a private group based in Europe (“Euro Group”) can obtain a 50% interest in BacTech’s proposed bioleach plant in exchange for providing 100% of the necessary financing. The Euro Group has required anonymity at this stage of the process with BacTech. The MoU outlines an investment to be made by purchasing shares in BacTech’s 100% owned Ecuador subsidiary. The agreement is subject to completion of the group’s due diligence and subsequently BacTech producing suitable bioleach test results on material from Ponce Enriquez. “Obviously this is a big step forward for us. We always knew the first plant would be the toughest to finance so this agreement provides us with some comfort going forward. If the bioleach results are positive, both parties will then move to execute a Joint Venture agreement (“JV”) to complete the project. The project will be carried out in BacTech’s subsidiary in Ecuador thereby limiting the dilution in the parent, public company,” said Ross Orr President and CEO of BacTech. The proposed investments will be made in the following fashion. 1. US$100,000 to earn 5.8% of the subsidiary. The funds will be earmarked for the completion of the bioleach test work at ALS Labs in Perth, Australia under the guidance of Dr. Paul Miller. In the event of an unsuccessful bioleach test program, the Euro Group can convert their investment to BacTech common shares at this stage. 2. US$300,000 to earn an additional 10.3% of the subsidiary. The funds will be used to complete a Feasibility Study and begin the process to obtain the necessary permits from the government. 3. US$300,000 to earn an additional 7.5% of the subsidiary. The funds will finance detailed engineering using the flow chart established from the bioleach results. 4. Upon arranging the financing for the plant construction, Euro Group will earn an additional 26.4% bringing their total ownership to 50% of the subsidiary. Once the due diligence is co...