BacTech Environmental Closes First Tranche of Private Placement
TORONTO, CANADA -- (Marketwire) -- 06/30/11 -- BacTech Environmental Corporation ('BacTech' or the 'Company') (CNSX: BAC) announced the closing of the first tranche of the private placement originally announced on June 1, 2011. The Company issued 2,500,000 units priced at $0.20 per unit, for total gross proceeds of CAD$500,000. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.30 until June 29, 2012.
In connection with the closing of the first tranche, BacTech will pay to arm's length parties finder's fees totaling $19,500 and issue 97,500 finder's warrants. Each finder's warrant will be exercisable into one common share at $0.20 until July 2, 2013. The common shares and underlying securities issued pursuant to the private placement are subject to a four-month hold period which expires October 30, 2011. Given the difficult market conditions, BacTech will consider raising less money than was originally planned. The final date for the second closing will be July 15th.
The proceeds of the private placement will be used for the Snow Lake project in Manitoba, the Avalos Smelter project in Mexico, general working capital and ongoing test work.
BacTech profile
BacTech Environmental holds the exclusive, royalty-free rights to use the patented BACOX bioleaching technology for the reclamation of tailings and mining waste materials. On April 25, BacTech was awarded a contract by the Mines Branch of the Manitoba Department of Innovation, Energy and Mines, to remediate an arsenopyrite gold stockpile situated at the Snow Lake Mine in Snow Lake, Manitoba. This is the Company's first project since the Plan of Arrangement was completed on December 2, 2010. On June 2, BacTech signed a Memorandum of Understanding with Teamwork of Chihuahua, Mexico, to investigate the use of bioleaching to reclaim some 1 million tonnes of tailings located at the Avalos Smelter in the city of Chihuahua.
Shares outstanding 37,478,361
Contacts:
BacTech Environmental Corporation
Ross Orr
President & CEO
416-813-0303 ext 222
info@bactechgreen.com