Scottsdale, Arizona- El Capitan Precious Metals, Inc. (OTC/BB: ECPN) President and CEO sent the following letter to shareholders:
We have been receiving a very high number of calls and e-mails expressing concern with our stock price and questioning what is going on in the process of engaging an investment banker. The purpose of this letter is to give everyone exactly the same information about where we are in the process of selling the El Capitan property.
The company has prepared a prospectus that details:
- Geological report of the property and surrounding area
- Description of the 141 million tons of "measured reserve"
- 1.2 ounces of gold equivalent per ton generated from "chain of custody" head ore
- Sales receipts of the precious metals yielded from the ore
- Permitting and claims substantiation
These materials have been submitted to an investment banker who has engaged an independent "due diligence" agent to verify what has been submitted. The outcome of this verification process will be the basis on which the investment banker decides to engage in the representation of the property. El Capitan has been required to keep the participant information confidential until that decision has been made.
Management believes that it is in the highest and best interests of all the shareholders to diligently follow the confidentiality requirements of this process. When a decision is made we will announce it immediately.
In the meantime, the facts are compelling. The company has an extraordinary asset in the form of a surface minable measured reserve of 141 million tons consisting of 1.2 ounces of gold equivalent or better per ton. When you consider that value will accrue to about 250 million shares, the resulting value per share is extraordinary. This is the basis of our decision to execute the strategy to do what is necessary to sell the property. It is only reasonable to take the time to go through this process with all the discipline needed to succeed.
The decision to hold your stock, sell it, or buy more is completely yours. Regardless, we will do our best to move the process as efficiently as possible.
Chuck Mottley, President and CEO
El Capitan Precious Metals, Inc
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. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the 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 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. The Company disclaims any obligation to update its forward-looking statements.