Below is a description , how to configure The Bat 1.39 for SMTP AUTH support.

First, Select the position "Properties" in the menu "Account"

    

Then, a window will appear:

    

Click on the "Transport" Field on the left. The Right side of the window will look like on the picture above.

Click on the "More" button.

Another window will appear:

    

Select "Perform SMTP Authentication (RFC 2554)" option.

Select "Use POP server Login".

Click on "OK" , the window will close , click on the "OK" button in the Preferences window and now you have working SMTP AUTH support.