Green Tech Co.: Tailings Research Facility Ramping Up in Ontario

BacTech Environmental Corp. (BAC:CSE;BCCEF:OTCQB;OBT1:FRA)

Final refinements are underway, and full-scale campaigns will be possible in the coming weeks as BacTech Environmental Corp. (BAC:CSE;BCCEF:OTCQB;OBT1:FRA) continues its pyrrhotite tailings bioleach research initiative in Sudbury, Ontario.

MIRARCO Mining Innovation, led by Dr. Nadia Mykytczuk, has commissioned the bioleaching cascade reactor circuit. MIRARCO's team has completed two baseline bioleaching campaigns to ensure that instrumentation, the solids suspensions, leaching kinetics, and solid/liquid handling are operating as designed.

"Our team is excited to have the bioleaching piloting circuit up and running," Mykytczuk said. "We know that BacTech is eager to pilot their process. These multi-partner collaborative projects, like this one funded through a MICA grant and NOHFC grants to MIRARCO, are not trivial undertakings, but we are confident that the test work will achieve an essential step to proving the viability of the technology."

The company said it is part of a consortium to provide solutions for 80 to 100 million tonnes of pyrrhotite tailings in and around Sudbury from 90 years of mining, the company said.

"They were dumping this stuff in lakes for the last 100 years to keep it underwater so that it wouldn't oxidize on its own," BacTech Chief Executive Officer Ross Orr said. "We're just assisting that process, and then . . .  trying to harvest the results of our labors."

The Catalyst: Recovering Value From Waste

Pyrrhotite is a highly reactive iron sulfide mineral that reacts strongly when exposed to oxygen, releasing soluble acidic iron harmful to the environment. BacTech also said the tailings contain lower-grade nickel and cobalt values.

Chris Temple of The National Investor, a supporter and shareholder of the company, called BacTech "a poster child for what is legitimately a green cause."

BacTech said "considerable thought" will be given to planning for both upstream and downstream components at the plant.

"Up to 90% of pyrrhotite is made up of iron (~55%) and sulfur (~35%)," the company said in a release. "The focus of the test work will be to determine whether there exist formulations for both elements that could be commercially sold as a by-product to enhance the overall economics of the project."

"The sum of the parts (of the pyrrhotite) can equal more than the whole," BacTech Chief Executive Officer Ross Orr said.

Important Permit Obtained in Ecuador

BacTech is building a bioleaching plant in Ecuador and, last month, finally obtained an important environmental license from the country's government of Ecuador, a major milestone.

Chris Temple of The National Investor, a supporter and shareholder of the company, called BacTech "a poster child for what is legitimately a green cause."

The license was "the last such hurdle for the company," he wrote.

Technical Analyst Clive Maund of CliveMaund.com also rated BacTech as an Immediate Buy in March.

The company has launched a new sustainable framework for issuing US$20 million in Green Bonds to pay for the plant.

"While governments may change, environmental issues persist until addressed," Orr said. "I firmly believe that Ecuador is just the first in a series of successes that will follow once we demonstrate the capabilities of our technology."

The bioleaching process uses naturally occurring bacteria, harmless to humans and the environment, to extract precious and base metals from ores, concentrates, and tailings. Its motto is "Our bugs eat rocks." If rocks are like bricks in a wall, and sulfur is the mortar, the bacteria eat the sulfur and cause the wall to come crashing down.

The company is also working toward closing on US$20 million in green bonds for the plant's construction.

Ownership and Share Structure

Nearly half of the company, 49%, is held by insiders, management, and strategic shareholders, the biggest of which is Option Three Advisory Services Ltd., which owns 8.48%, or 15.57 million shares, according to Reuters. That also includes CEO Orr, who owns 3.57% or 6.54 million shares, and Board Director Timothy Lewin, who owns 0.54% or 0.98 million shares.

The rest is retail.

The company has 185.36 million shares outstanding, including 159.12 million free floating. Its market cap is CA$12.98 million, and it trades in a 52-week range of CA$0.10 and CA$0.06.

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Important Disclosures:

1. 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. In addition, BacTech Environmental Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. 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.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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