News Releases - Tuesday, May 12, 2009
BacTech to Consider Spin-Out of Gold Subsidiary
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Toronto, Canada, May 12 2009 -- BacTech Mining Corporation ("BacTech"
or the "Company", TSX.V: BM) today announced that it will investigate
the possibility of a spin-out transaction to create a stand alone gold
company that would have its own management and a separate board of
directors. The only relationship between the spin-out company and
BacTech would be the payment of a production royalty to BacTech for the
exclusive use of its gold technology.
The rationale behind such a move is to separate two distinctly
different businesses. With BacTech's entry into the cleantech arena
through the Cobalt, Ontario, reclamation opportunity, BacTech may have
created a conflicted shareholder base. Formerly, the Company has
restricted the application of its technology to the mining of
refractory gold pursuant to which three plants have been built to
process arsenic gold ores. With the application of bioleaching to the
reclamation of old mining tails, BacTech believes that it will also
pursue a much different type of investor than it has in the past.
"Most of the cleantech funds we have spoken to are not able to invest
in a company that is involved in mining. The possible split allows
investors to invest in their company of choice and unlocks the value of
the technology to pursue multiple applications," said Ross Orr,
President and CEO of BacTech.
The first asset to be held by the spin-out company will be the
Company's 33% interest in 2 gold deposits in Papua New Guinea ("PNG")
that BacTech has agreed to purchase from Yamana Gold Inc. ("Yamana").
BacTech has reapplied to the PNG government in the name of its
wholly-owned subsidiary, BacTech Gold Corporation, for approval of the
asset purchase from Yamana.
Some of the remaining issues to be addressed are the tax effects of a
distribution to shareholders and the ability to source a capable
management team with mine building expertise, and an effective board of
directors to oversee the future of the gold company. Once these issues
have been addressed, BacTech intends to call a shareholders' meeting to
seek approval of the transaction. The completion of the spin-out
transaction is anticipated to take at least a few months to complete,
subject to receipt of all requisite shareholder and regulatory
approvals.
BACTECH PROFILE
BacTech owns patented bacterial oxidation technology for the treatment
of refractory ores and concentrates to enhance the recovery of gold,
silver and base metals. The Company's focus is the acquisition of
equity positions in projects amenable to bioleaching. In June 2008, the
Company signed an agreement to acquire Yamana Gold Inc.'s 33% interest
in two refractory gold deposits in Papua New Guinea. In September 2008,
BacTech signed an MOU to investigate the use of bioleaching to
reprocess arsenic-laden tailings in Cobalt, Ontario. This is the
Company's first foray into the cleantech industry. BacTech is
continuing to evaluate additional remediation projects.
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For further information contact:
Ross Orr, President & CEO, 416-813-0303 ext 222
Investor Relations:
Pierre Anglos 1-800-436-2027 Email: capitalgainsco@shaw.ca
Shares outstanding 82,857,206
