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BacTech Closes First Tranche Of Note Financing
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Toronto, Canada, August 7, 2008 - BacTech Mining Corporation ("BacTech"
or the "Company", TSX-V: BM) is pleased to announce that it has closed
on $530,000 of subscriptions for the first tranche of its recently
announced convertible note financing (see press release: July 23,
2008).
The net proceeds of the financing will be used to produce an NI 43-101
compliant resource statement for assets recently acquired from Yamana
Gold Inc. in Papua New Guinea, as announced on June 18, 2008, and to
fund the Company's general working capital requirements for the
remainder of the year.
Under the terms of the private placement, BacTech issued units, with
each unit being comprised of a 2-year $10,000 principal convertible
redeemable note and 50,000 common share purchase warrants. Under the
terms of the 2-year note, BacTech will have the option to redeem the
notes in full within 4 months, in which case the holder of the note
will have the option to convert 20% of their holdings into common
shares at a price of $0.10 per share. After 4 months, the holder of
the note will have the option to convert the notes in full into common
shares at a price of $0.10 per share. Each warrant is exercisable for
one common share at a price of $0.15 per common share until August 7,
2010, provided that 20,000 of the warrants comprising each unit will
only become exercisable in the event that BacTech does not redeem the
notes within 4 months or repay the notes within 6 months. In the event
that BacTech does redeem or repay the notes within the prescribed time
periods, the 20,000 warrants comprising each unit shall automatically
expire.
A finder's fee of 5% will be paid to arm's length parties on a portion
of the subscriptions.
The securities issued in connection with the private placement are
subject to a statutory four-month hold period that expires December 8,
2008.
BACTECH PROFILE
BacTech has developed and patented bacterial oxidation technology for
the treatment of refractory ores and concentrates to enhance the
recovery of gold, silver and base metals. BacTech has successfully
commissioned three bioleach plants for gold and demonstrated its
technology in the selective recovery of base metals from complex
sulphide concentrates in a joint project with Industrias Pe�oles de
C.V. of Mexico that was completed in 2001. The Company's focus is the
acquisition of equity positions in projects amenable to bioleaching.
The Company recently signed an agreement to acquire Yamana Gold Inc.'s
33% interest in 2 refractory gold deposits in Papua New Guinea.
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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 60,107,206
The TSX Venture Exchange has not reviewed and does not accept any
responsibility for the adequacy or accuracy of this release
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Copyright (c) 2008 BACTECH MINING CORPORATION (BM) All rights
reserved. For more information visit our website at
http://www.bactech.com/ or send mailto:info@bactech.com
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