May 19, 2021 – Las Vegas, Nevada – El Capitan Precious Metals, Inc. (OTC/QB: ECPN) announced today that a Nevada court has upheld the results of a Court-Order-mandated election that was held in January of this year at which time Doug Sanders took the helm as President and Chairman of the Board for El Capitan. “We are turning the page on years of inaction and questionable management practices related to the El Capitan mine and starting a new chapter — with new leadership, revenue strategies, and a team of experts committed to getting the company into business,” said Sanders
A long-term shareholder who has served as a consultant to the ECPN Board over the past decade, Sanders has inherited a company that is on the verge of insolvency. Future updates to shareholders will detail the state-of-the-state related to the company as well as new action taken to right the sinking ship related to delinquent SEC filings and lapses in insurance coverage and other contracts that protected and secured the Company and its assets.
“My goal is to get us out of debt and into business,” said Sanders, who admits that “the hole is deep — in terms of debt and delinquencies — but our determination is high.” As new Board Chairman, Sanders brings a wealth of knowledge and experience to that role. His career includes 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. His work over the years as a consultant to the El Capitan Board of Directors has given him a depth of knowledge related to both the potential and challenges of the El Capitan mine. The team that Sanders has surrounded himself with supplements his experience and background as well as supports the key areas of focus that he will address in “getting El Capitan into business.” That team of advisors includes experts in finance, law, mine operations, communications and logistics.
Here is a brief recap of the three events related to Doug Sanders’ new leadership role with the Company:
- An October 2020 Court Order drove his efforts to hold an election… after three years without shareholder meetings, annual meetings or Board elections.
- During an Election Results Announcement call held on January 16, 2021, he presented the vote counts and election results. Sanders was elected as the sole new Board Member/Chairman by an overwhelming majority of the vote — approximately 100 to 1. Here are the details on the breakdown of the 111,267,633 total votes cast — reportedly nearly double the number of total votes ever cast in an El Capitan election — for the four candidates (three previous Board Members and Sanders) who were on that Ballot.
John Balding Votes cast for Balding: 0
Daniel Martinez Votes cast for Martinez: 1,192,500
Chuck Mottley Votes cast for Mottley: 50,000
Doug Sanders Votes cast for Sanders: 110,025,133
Three points related to the election results: 1 – Per voting instructions, shareholders were instructed to vote for one candidate only, with the successful candidate selecting his Board of Directors; 2 – Sanders received 25% (of the 437,800,000 shares outstanding) of the vote, while the other three candidates combined received less than 1%; 3 – If Balding, Martinez and Mottley still own shares of El Capitan, they did not vote their shares (or vote for themselves) in the January election.
- Due to appeals filed by Daniel Martinez, the Company was forced to spend additional monies in legal fees to respond to those filings and secure yet another court decision that validated both the 2020 Court Order for an election and the results of the January 2021 election. Documentation related to these decisions is included in this Company update to shareholders.
Included below as part of this Business Update:
- October 20, 2020 Court Order ordering an election
- April 14, 2021 Court Minutes Journal Entry – Clark County, Nevada
- May 5, 2021 Notice of Entry of Order
About El Capitan Precious Metals, Inc.:El Capitan Precious Metals, Inc is an operational company incorporated in Nevada that is principally engaged in the mining of iron ore and the subsequent recovery of valuable minerals. Company’s primary asset is the 100% equity interest in El Capitan, Ltd., an Arizona corporation that which holds an interest in the El Capitan property located near Capitan, New Mexico.
Forward-Looking Safe Harbor Statement:
The statements included in this business update 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.