BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

March 05, 2009 08:30 ET

BioteQ Terminates Management Contract in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2009) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, announced today that it has terminated contract services at the Lluvia de Oro - Jojoba gold mining project in Sonora, Mexico, owned by NWM Mining Corporation. As previously announced, BioteQ signed a management contract with NWM, commencing October 1, 2008, to provide process and operations services at the mine site in return for fees based on the quantity of metals recovered. Production quantities have not met expectations because mining remains inactive. BioteQ provided notice to NWM according to the terms of the contract. BioteQ has terminated all of its employee contracts at the site and has provided the current reagent inventory to NWM on a buy-back basis until March 31, 2009. This decision enables BioteQ to preserve capital.

Ongoing financial and operational obligations associated with the mine site have been assumed by NWM.

The Lluvia de Oro mine has provided BioteQ the opportunity to demonstrate SART technology, combined with BioteQ's sulphide technology, as an enabling technology for low grade gold-copper ores, providing a sustainable alternative for copper removal from wastewater and recycle of the gold leaching reagent. BioteQ's treatment plant has successfully removed high-grade copper concentrate from the gold solution, which allows gold recovery, removes the deleterious impact of soluble copper at the site and concurrently regenerates valuable leaching reagents for gold extraction. BioteQ has sold all copper produced from the new plant to Trafigura, an international metals trader, at commercially competitive rates. The gold heap leach plant and BioteQ's SART plant have successfully shown that low grade copper-gold deposits can be developed using the combined technology.

The gold heap leach and gold recovery plant are operating. The SART plant is in standby mode, pending future copper production from heap leach activities, having successfully removed copper from the leach solutions. NWM is seeking additional financing in order to expand mining operations and increase gold and copper production to previously announced levels. BioteQ maintains ownership of the SART plant, and a first charge on the Lluvia de Oro - Jojoba project assets to secure its investment, including loan to NWM, and is currently exploring alternatives with third parties to recover its investment at the site.

BioteQ Corporate Profile

BioteQ is an industrial water treatment company that applies innovative technologies to solve complex water problems, reducing environmental liabilities while generating revenue from wastewater. The Company's commercially proven technologies treat industrial wastewater contaminated with dissolved heavy metals and sulphate, producing saleable by-products and clean water that can be discharged safely to the environment. BioteQ has built 8 plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bioteq.ca.

On behalf of the Board of Directors

Brad Marchant

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "might" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled "Risks" in the Company's Annual Report for the Year Ended December 31, 2007. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • BioteQ Environmental Technologies Inc.
    Tanja McQueen
    VP Corporate Development
    (604) 685-1243 or 1-800-537-3073
    or
    BioteQ Environmental Technologies Inc.
    Caren Holtby
    Investor Relations
    (604) 685-1243 or 1-800-537-3073
    (604) 685-7778 (FAX)
    Email: investor@bioteq.ca
    Website: www.bioteq.ca