TORONTO, CANADA--(Marketwired - July 3, 2013) - BacTech Environmental Corporation ("BacTech" or the "Company") (CNSX:BAC) (OTC:BCCEF) (WKN: A1H4TY) is pleased to announce that it has arranged a bridge loan that will enable the Company to complete its technical preparations for the Snow Lake project. Specifically, the Company plans to use the funds to complete its front end engineering (F.E.E.D.) study which remains an integral part of the Snow Lake Project financing package.
Ross Orr, the President & CEO commented:
"We believe this financing will help us to further build value through engineering on the Snow Lake Project. In this difficult environment for junior companies we are very pleased to have access to this capital to move the project ahead. The Company intends to repay the loan from the proceeds of a project financing for the Snow Lake Project"
The agreement calls for BacTech to receive up to CAD$600,000 comprised of (a) an initial $300,000 within 10 days of closing, and (b) a second $300,000 can be drawn after BacTech has confirmed that the underlying contract with the Province of Manitoba can be used as collateral for the loan. All loans are subject to interest at the rate of ten percent per annum, and are to be repaid by November 20, 2013 subject to the Company's right to extend repayment. In addition the loans are convertible into common stock in the context of the price of BacTech shares at the time of filing the loan agreement with the CNSX. The Company can make an early repayment of the loans provided it issues 1,000,000 share purchase warrants to the lender exercisable 1 year from the date of the first closing at a price of $0.10 per share.
BacTech Environmental Corporation holds the perpetual, exclusive, royalty-free rights to use the patented BACOX bioleaching technology for the reclamation of tailings and mining waste materials. In December 2011, BacTech signed a contract with the Mines Branch of the Manitoba Department of Innovation, Energy and Mines to remediate an Arsenopyrite Residue Stockpile ("ARS") situated at the Snow Lake Mine in Snow Lake, Manitoba, to eliminate further leaching of arsenic generated within the ARS into the surrounding watershed. The Company continues to field enquiries globally with respect to additional opportunities for remediation.
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Shares outstanding 48,755,027
The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.