SCOTTSDALE, Ariz.--(BUSINESS WIRE)--El Capitan Precious Metals, Inc., (OTCQB: ECPN) announced today that an agreement was executed in December for the sale of its precious metal hyper-concentrates. El Capitan Chairman and CEO John F Stapleton reported that the Company reached a final agreement with a buyer and has executed a Purchase Agreement for all remaining hyper-concentrates produced by the Pilot Plant from the concentrate materials stored at the bonded warehouse in Tucson, Arizona.
This sale represents the last El Capitan Pilot Program activity. It successfully completes the goals of the Pilot program, as well as demonstrates several small-scale recoveries, (5–15 pounds of hyper-concentrated material recovery of precious metals) proving the recovery technology. This sale of the remaining hyper-concentrated material to the buyer, who will smelt and refine the remaining material, demonstrates recovery and technology on a larger scale.
Per the terms of the agreement, “settlement and payment shall be a minimum of 60 days following receipt of material of sampling completion, should representation be utilized.” This transaction protocol utilizes an industry standard: Upon receipt of the concentrates the buyer will assay the material utilizing an outside representative. This assay will be compared to an independent assay performed by El Capitan. If there is a significant difference between the two, an independent umpire will be engaged to resolve the difference. Both parties agree that, in the event of a dispute or discrepancy, the entity’s valuation closest to the umpire’s will prevail.
The Pilot Program began with the development and testing of a hyper-concentration device built in China in late 2016 and shipped to the United States in the first calendar quarter of 2017. The device was installed and modified to operate in the United States in the second calendar quarter of 2017 and has processed all the concentrates from the Tucson warehouse into hyper-concentrates. After considerable experimentation and modifications during mid-2017, the Company was pleased with the effectiveness of the technology and the end results achieved. The Pilot Program achieved its purpose of proving the technology through precious metals recovery as of the end of 2017.
El Capitan is evaluating all the data generated by the Pilot Plant to determine the appropriate pathway to a Production Plan.
About El Capitan Precious Metals, Inc.:
El Capitan Precious Metals, Inc. is an exploration stage company (as defined by the Securities and Exchange Commission’s Industry Guide 7) based in Scottsdale, Arizona that is principally engaged in the exploration of precious metals and other minerals. The Company’s primary asset is its wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which holds the 100% equity interest in the El Capitan property located near Capitan, New Mexico. www.elcapitanpmi.com
Forward-Looking Safe Harbor Statement:
The statements included in this press release concerning predictions of economic performance and management’s plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical facts. Words such as “expect(s),” “feel(s),” “believe(s),” “will,” “may,” “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the expected completion, timing and results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, pre-feasibility and feasibility studies and expectations with respect to the engaging in strategic transactions. All of such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Specifically, there can be no assurance regarding the timing and terms of any transaction involving the Company or its El Capitan property, or that such a transaction will be completed at all. In addition, there can be no assurance that periodic updates to the
Company’s geological technical reports will support the Company’s prior claims regarding the metallurgical value and make-up of the ore on the New Mexico property. Additional risks and uncertainties affecting the Company include, but are not limited to, the possibility that future exploration, development, testing or mining results will not be consistent with past results and/or the Company’s expectations; discrepancies between different types of testing methods, some or all of which may not be industry standard; the ability to mine precious and other minerals on a cost effective basis; the Company’s ability to successfully complete contracts for the sale of its products; fluctuations in world market prices for the Company’s products; the Company’s ability to obtain and maintain regulatory approvals; the Company’s ability to obtain financing for continued operations and/or the commencement of mining activities on satisfactory terms; the Company’s ability to enter into and meet all the conditions to consummate contracts to sell its mining properties that it chooses to list for sale; and other risks and uncertainties described in the Company’s filings from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
El Capitan Precious Metals, Inc.
Steve Antol, 928-515-1942