Ecuador Mining Expert With Green Credentials Joins Co.'s Board

BacTech Environmental Corp. (BAC:CSE;BCCEF:OTCQB;OBT1:FRA) announced that the president of the Board of Directors of the Mining Chamber of Ecuador has joined the green tech company's Board of Directors.

Carolina Orozco is also the current country manager for Torata Mining Resources, a subsidiary of Challenger Exploration-Australia, and leads the El Guyabo project. She is also the co-founder of Women in Mining Ecuador, promoting female participation in the industry there.

"She will be a valuable addition to our team as we continue to introduce bioleaching to the Ecuadorian mining community," BacTech Chief Executive Officer Ross Orr said. "We have already discussed possible solutions to get environmentally non-compliant producers in Ponce Enriquez to become 'legal' from an environmental permitting perspective. We have committed to the government of Ecuador that we will only purchase concentrates from mines that are fully compliant with Ecuadorian environmental regulations for mining."

The political situation in the Latin American country continues to improve after rising drug gang violence made global headlines when gunmen stormed a live TV broadcast.

Ecuadorians voted on Sunday to support President Daniel Noboa's security measures to fight the situation, including measures allowing the military to patrol with police, extraditing accused criminals, and increasing prison sentences for crimes such as terrorism and murder, Reuters reported.

A quick count by election officials showed between 60% and 73% backed the measures.

"We have defended the country; now we have more tools to fight against crime and return peace to Ecuadorean families," Noboa posted on his Instagram account.

Investors have embraced Noboa's security stance, the news service reported.

"Noboa is making investors rethink security risk, and they are seeing him as potentially able to continue through the next election," Zulfi Ali, portfolio manager for PGIM Fixed Income's Emerging Markets Debt team, told Reuters.

Ecuadorean bonds have returned nearly 50% to investors so far this year at the index level, among the highest returns in emerging markets year to date, Reuters said.

The Catalyst: 'A Gem in Ecuador'

BacTech's 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."

The rocks are like bricks in a wall, with sulfur as the mortar. The bacteria eat the sulfur, causing the wall to come crashing down.

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

"We've discovered a gem in Ecuador," Orr said. "While governments may change, environmental issues persist until addressed. 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."

Technical Analyst Clive Maund had recommended BacTech in February when it was at CA$0.06 a share. It went on to stabilize and broke higher when the news of the IP expansion first dropped.

Ecuador's small mines, including 90 in the area of the plant that produce significant amounts of arsenic with gold, will be the feed for the plant, which would process about 30,900 ounces gold (Au) per year. There is potential for expansion; the total availability of materials in the area is an estimated 250 tonnes per day.

BacTech said new board member Orozco has a dual background in environmental engineering and law, with two master's degrees in environment and safety for extractive industry projects, as well as an MBA from the University of Barcelona.

She said it was the combination of green credentials and process that attracted her.

"BacTech is a company that seeks environmental solutions while recovering metals," Orozco said. "I am honored and happy to be part of the Board of Directors of this company, as it is the example that: mining + innovation + nature = sustainable businesses reciprocal with the planet."

Expanded 'Zero-Waste' Patent

The company also recently announced it had filed an expanded application for what it says is the first zero-waste bioleaching process for recovering metals, fertilizer, and iron from millions of tons of mine tailings worldwide.

From 1 tonne of waste, five different products can be sold, leaving behind zero waste, the company said. Those products are iron for steel or battery manufacturing, premium organic fertilizer, and the base metals nickel, cobalt, and copper. What's left are silicates that can be used as industrial filler or paste for backfilling in mines.

BacTech said it's independently estimated that there are 80 to 100 million tonnes of pyrrhotite tails in the Sudbury, Ontario, basin, containing 60% iron, 30% to 35% sulfur, 0.85% nickel, and 0.03% cobalt, in addition to the copper that has been deposited over the past 100 years of mining.

Longtime supporter and shareholder Chris Temple, author and editor of The National Investor, called the news "uber-exciting stuff."

"As much as 90% of the total value in tailings materials such as those specifically at issue in Sudbury (which would probably have long since been deemed a 'Superfund' area/story by the EPA were it in the US) could conceivably come from the iron and fertilizer production," Temple wrote.

Technical Analyst Clive Maund had recommended BacTech in February when it was at CA$0.06 a share. It went on to stabilize and broke higher when the news of the IP expansion first dropped.

"Given how significant this news is, it is thought likely that the stock will initially run at least to the resistance level in the 9 to 10 cent area," wrote Maund, who said he was staying long and rated the stock a Strong Buy for all timeframes.

"It is hard to overstate the significance of the technology BacTech has developed for the mining industry and the environment worldwide," Maund wrote, adding the stock has "huge potential upside." 

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 193.04 million shares outstanding. Its market cap is CA$13.9 million, and it trades in a 52-week range of CA$0.10 and CA$0.05.

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.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Contributing Author Disclosures:

1. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.