BacTech Mining Corporation
TSX VENTURE : BM

BacTech Mining Corporation

January 07, 2008 09:00 ET

BacTech/Scorpio Gold Shareholders Approve Merger

TORONTO, ONTARIO--(Marketwire - Jan. 7, 2008) - BacTech Mining Corporation (TSX VENTURE:BM) -

The following news was originally released after the BacTech shareholders meeting on December 28th, 2007. It is being re-released at this time to a larger post-holiday audience.

BacTech Mining Corporation ("BacTech" or the "Company") is pleased to announce that shareholders at the special shareholders meeting held on December 28, 2007, voted 99.6% in favour of approving the merger (the "Merger") of the Company with Scorpio Gold Corporation ("Scorpio Gold"), a 93%-owned subsidiary of Scorpio Mining Corporation ("Scorpio Mining") (TSX:SPM).

Scorpio Gold Corporation has also confirmed that its shareholders approved the merger by a 96.14% margin.

In addition to approving the Merger, the shareholders of BacTech voted in favour of changing the name of BacTech to "Scorpio Gold Corporation", and in favour of changing the size and composition of BacTech's board of directors, as set forth in the Company's management information circular dated November 12, 2007.

The combined company will hold interests in 2 past-producing gold mines in Nova Scotia, a polymetallic exploration project in the Gaspe, Quebec, as well as access to numerous projects under evaluation by BacTech which are detailed further in this release.

As consideration for the Merger, BacTech will issue 2.6 common shares for each common share of Scorpio Gold outstanding and will exchange any outstanding Scorpio Gold warrants for BacTech warrants based on the same 2.6:1 exchange ratio. The Merger constitutes a change of control of BacTech as Scorpio Mining will, on the closing of the Merger, hold approximately 46% of the issued and outstanding common shares of BacTech.

Cassels Brock & Blackwell LLP acted as BacTech's legal advisor. Axium Law Corporation acted as legal advisor for Scorpio Gold.

Project Updates

BacTech has been actively pursuing projects for which its technology would add considerable value. The following is a brief description of 4 of these projects.



1. Tailings: BacTech has been conducting test work on a large base metal
tailings deposit since last September. The work to date has focused on
preconcentration of the metal sulphides in the tails in order to reduce
the feed mass for a bioleach process. The initial results from this work
appear promising with respect to metal recovery and concentrate grade.
Much of the initial work will be completed by the end of January at
which time the concentrates will be subject to bioleach testing in
Perth, Australia and the results used to provide input to a
prefeasibility study.

2. Cuba: The Company has submitted the appropriate corporate documents to
the Cuban government which will allow BacTech to operate in that
country. We expect approval shortly. There are numerous sulphide-based
projects of interest to BacTech on the island.

3. Chile: BacTech has reinitiated discussions for gold and copper projects
in this country.

4. Eastern Europe: The Company is in discussions with regard to a proven,
refractory gold deposit in an eastern European country.


CAUTIONARY STATEMENT REGARDING REVERSE TAKEOVER TRANSACTION

Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange acceptance. The transaction cannot close until the required acceptance of the TSX Venture Exchange is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular, any information released or received with respect to this transaction may not be accurate or complete and should not be relied upon. Trading in the securities of BacTech should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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 Penoles 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.

Shares outstanding 57,607,206

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release.

Contact Information

  • BacTech Mining Corporation
    Ross Orr
    President & CEO
    (416) 813-0303 ext 222
    (416) 596-9840 (FAX)
    Website: www.bactech.com
    or
    Investor Relations:
    Pierre Anglos
    1-800-436-2027
    Email: capitalgainsco@shaw.ca