BacTech Environmental Corp. (BAC:CSE; BCCEF:OTCQB; OBT1:FRA) announced through a press release that it has obtained an important environmental license from the government of Ecuador.
Chris Temple of The National Investor commented, "Late Friday, Ecuador's Constitutional Court . . . essentially upheld the decree of outgoing President Lasso setting up the final community/environmental consultation process for development projects in the country, including mining, public works, utilities, and more."
The company reports that this is a major milestone in its efforts to construct a bioleaching processing facility. As part of this process, the company intends to conclude negotiations with Analytica Securities, which has allowed the company to put US$17 million towards construction and US$3 million towards purchasing resources from local miners.
The company also noted that it had announced a private placement that should secure much-needed working capital for the company's projects. BacTech is raising CA$1M with a CA$0.08 unit that includes a half warrant. A whole warrant plus $0.12 will get you an additional common share for 2 years from the closing of the financing.
Rick Mills of Ahead of the Herd recently looked into the gold market, commenting, "If we're right, and we are on the cusp of a global economic revival.
The President and CEO of BacTech, Ross Orr, stated, "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 Daviaos (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 also released a number of economic highlights from the plan, including a pretax NPV of US$60.7 million, a pretax IRR of 57.9%, a capital cost of US$17 million, a bioleaching operating cost of CA$212 per tonne, and annual gold production of 30,900 ounces based on a US$1600 gold price.
Revival in Store for Gold
Rick Mills of Ahead of the Herd recently looked into the gold market, commenting, "If we're right, and we are on the cusp of a global economic revival, the three metals I'd want to be invested in are gold, silver, and copper. Even better, the junior resource companies that own large Au, Ag or Cu deposits in safe jurisdictions that would be of interest to larger, deep-pocketed mining companies."
Technical Analyst Clive Maund reviewed the company in July of 2023 and rated it as a "Strong Speculative Buy" for investors.
Mills highlighted several factors behind a surge in gold, including rising international conflicts, high national debt, and purchases by central banks.
Clive Maund also reviewed the gold market on November 19, 2023, and stated, "On its latest long-term 20-year chart, it is crystal clear why gold is so well placed to break out upside into a major new bull market very soon, for on this chart we can see that a fine giant Cup and Handle continuation pattern is fast approaching completion."
Maund also stated that the market for gold will likely get a boost from a tenuous dollar.
A Strong Speculative Buy
Technical Analyst Clive Maund reviewed the company in July of 2023 and rated it as a "Strong Speculative Buy" for investors, citing a number of factors in the company's stock patterns: "In addition to the strongly bullish volume pattern of the past six weeks, which has been almost entirely upside volume, are the strong Accumulation line which is a result of this, and the partial unwinding of the earlier overbought condition shown by the MACD indicator and the cross of the moving averages with the 50-day rising clear through the 200-day."
Chris Temple looked at BacTech on June 6, 2023, and elaborated on the way in which the company's performance might be affected by Ecuador's election. According to Temple, the company can finally proceed with scheduled milestones, such as its community consultations.
Streetwise Ownership Overview*
Chris Temple also released a more recent report that stated the recent license was "The last such hurdle for the company; BacTech will now proceed to tie up project financing and move to construction."
The company has a few catalysts to announce, according to its investor presentation, namely Phase 2 of its Tenguel Project, which the company expects to produce 100,000 ounces of gold every year.
Ownership and Share Structure
According to BacTech, management and insiders own approximately 49% of the company, as strategic investor Option Three Advisory Services Ltd. owns 8.48% of the company with 15.57 million shares, the CEO Ross Orr owns 3.57% of the company with 6.54 million shares, and Board Director Timothy Lewin owns 0.54% of the company with 0.98 million shares.
Reuters has no data on investors. However, Reuters does report that the company has 185.36 million shares outstanding and 159.12 million free float traded shares, while the company has a market cap of US$10.81 million and trades in the 52-week period between CA$0.05 and CA$0.10.
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- Bactech Environmental Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Bactech Environmental Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.