2018 Business Updates
Apr. 13, 2018
El Capitan Precious Metals Reports Breach of Contract by Buyer of Concentrates
Scottsdale, Arizona – El Capitan Precious Metals, Inc., (OTC/QB: ECPN) reported today that the Company was informed on March 30, 2018 that the contracted buyer to purchase and process the concentrates from El Capitan Precious Metals had decided not to process the material and, instead, offering to ship the material back to El Capitan Precious Metals.
This information was relayed by legal counsel for the purchaser in response to inquiries by the Company regarding the timely payment for the recovered metal that El Capitan Precious Metals had been informed had been successfully recovered from the concentrate material over the 60 days prior to the contracted payment date.
El Capitan Precious Metals is investigating the matter and will take all necessary and proper steps to pursue civil and criminal litigation of the matter if appropriate upon further investigation once the material is returned.
The Company will provide more details at the 2018 Shareholder Meeting scheduled for Wednesday, May 23 in Scottsdale, Arizona. It will be held at the Gainey Ranch Golf Club and is scheduled to begin at 10:00 am local time. The meeting agenda will include detailed updates on operations and revenue generation.
Feb. 26, 2018
El Capitan Precious Metals Elects Doug Sanders to its Board of Directors
Scottsdale, Arizona – El Capitan Precious Metals, Inc., (OTC/QB: ECPN) announced today that Doug Sanders has been elected to serve on its Board of Directors, effective immediately.
Sanders, an El Capitan shareholder for nearly 10 years, brings a wealth of knowledge and experience to the Company. His experience in construction and project management spans four decades and is both varied and extensive. His career has included work in heavy civil construction and pipeline construction and rehabilitation, with roles and responsibilities running the gamut from Project Manager to Division Manager to Executive VP/General Manager
The Company has utilized Sanders’ expertise in a variety of ways over the past decade—from monitoring off-site sample testing and overseeing ore shipments to building-design consulting at the mine site—and he has served as a consultant and Advisory Board member for several years. Board Chairman John F Stapleton stated that the Board believes Doug Sanders will be a valuable addition and brings a very specific mix of background and experience that complements the existing strengths of the Board.
Sanders will attend the upcoming Shareholder Meeting and Stapleton confirmed that the Company has scheduled its 2018 Shareholder Meeting for Wednesday, May 23 in Scottsdale, Arizona. It will be held at the Gainey Ranch Golf Club and is scheduled to begin at 10:00 am local time. The meeting agenda will include detailed updates on operations and revenue generation.
Feb. 19, 2018
The El Capitan Board of Directors reports the following updates:
In October of 2017, El Capitan Precious Metals, Inc. sent Johnson Matthey a 3.37-pound ingot. The bar was smelted using copper as a collector for platinum. Johnson Matthey, a world leader in refinery and material science, refined and assayed the material and reported a yield of 5.904 troy ounces of platinum. On January 24, 2018, Johnson Matthey wired net funds of $4,362.67 to the Company. The Company paid Johnson Matthey $1,500 in standard processing fees on the transaction.
Staking and Filing Additional Mining Claims
Earlier this month, on February 13, the Company filed additional mining claims with the State of New Mexico on an additional 2,000 acres.
The Company has engaged the accounting firm of Semple, Marchal & Cooper LLP to complete its 10-K audit. All details are available in the Company’s 8-K.
The original audit firm determined that they were unable to complete and certify the El Capitan audit due to the fact that they required a legal opinion from the Company concerning the issuance of stock for services during the prior period of several years. The Company determined that a legal opinion could not be provided without unreasonable effort and expense—if at all. The audit firm resigned the account on February 5, 2018.
The 10-Qs for the prior three quarters have been amended, the 10-K for fiscal year 2017 will be filed as soon as possible. The 10-Q for Q1 of 2018 will be filled immediately after the 10-K filing.
According to Board Chairman John F Stapleton, the challenges in completing the audit will not impact the Company in any way. All necessary extensions have been granted.
The Company has set a date for its 2018 Shareholder Meeting in May of this year. The scheduling change, from March to May, was made to accommodate the Company’s plan to present an expanded meeting agenda that will include detailed operations and revenue updates.
According to Stapleton, the Company will use those 90 days to “gather product information from operations as well as details on avenues for positive cash flow that is expected to result
from the sale of iron ore and precious metals concentrates over the next several months.”
The El Capitan Shareholder Meeting will be held in Scottsdale, Arizona on Wednesday, May 23, 2018 at the Gainey Ranch Golf Club. The meeting is scheduled to begin at 10:00 am local time.
Resignation of Clyde Smith
The Company has accepted the resignation of Dr. Clyde Smith from the El Capitan Board effective February 7, 2018. Dr. Smith’s decision, as stated in his resignation, was based upon the fact that the Company does not have access to metallurgical data on the recovery process, data which is confidential to the Pilot Plant operator. The Company thanks Dr. Smith for his loyal service to El Capitan Precious Metals, Inc.
Jan. 25, 2018
The El Capitan Iron Ore Opportunity
The Company posts the following informational update today:
The El Capitan property was originally evaluated as a potential iron ore mine during World War II. When the war ended, the interest in mining iron ore was no longer a national priority and the work and research related to iron ore was filed away for possible use in the future. Many years later, in the latter part of the 20th century, additional work was done. Analyzing the broader resource determined that the property contained significant amounts of precious metals, in additional to iron ore. The discovery of precious metals in the iron ore presented two issues in terms of monetizing the ore:
• Separating the precious metals from the iron ore
• Managing the excess iron ore after separation as the U.S. Forest Service does not allow the ore to be stockpiled on the property
To address the ore’s complexity, the Company entered into an agreement with a contract miner to devise a system to separate the precious metals from the iron ore minerals. The initial separation is done at the mine with a AuraSource device. The contract miner developed and built the “fine grinding device” during 2016 and 2017 to hyper-concentrate the AuraSource concentrates. The contract miner’s fine-grinding system produces a hyper-concentrate with the precious metals separated from much of the remaining iron-bearing ore and other unwanted minerals. The product produced by the fine grinding, separation process is then smelted in preparation for refining the precious-metals product.
Since the iron product must be removed from the mine site, the Company is creating a program to sell its iron ore. In July of 2017, Board Chairman John Stapleton met with a major steel company to discuss their plans to build an iron ore processing plant in New Mexico. This development, in conjunction with the Federal Government’s intentions to use domestic resources for one or more large infrastructure projects in the continental United States, presents the possibility of a large revenue-producing opportunity for the Company.
The Company believes the El Capitan property with its expanded acreage has the potential for significant tonnage of iron ore. The Company is optimistic that it would be economically feasible to enter into an agreement with a processor or buyer to take the El Capitan project into production.
In November of 2017, the Chairman and a board member met with an internationally recognized geologist and a representative from an entity that is considering the extraction and necessary separation of the El Capitan ore into a precious metals hyper-concentrate and an iron product. Following that meeting, the Company entered into discussions to define an agreement with this entity to process the iron ore at the El Capitan mine site and transport the iron product to the processing site. It is anticipated that the precious metals concentrates will be processed separately.
Jan 24, 2018
The Company posts the following informational update today:
“In spite of the many challenges, the Pilot Program has demonstrated extraordinary accomplishments for the Company. This is best illustrated by the progression from assays to precious metals recovery and sale. Pilot Plant operations have been successfully completed and the methods for recovery have been proven.”
– Board Chairman John F Stapleton
The following 4 slides recap those activities and detail the timeline. Hover your mouse or tap the screen to be able to click through the slides.
Jan 4, 2018
El Capitan Precious Metals Executes Contract with Precious Metals Buyer
Scottsdale, Arizona – El Capitan Precious Metals, Inc. (OTC/QB: 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. Business Updates Jan. 4, 2018 (Business Release PDF)