Owner
Post by Franko10 ™ on Sept 11, 2004 10:19:04 GMT -5
EL CAPITAN SIGNS LETTER OF INTENT FOR SALE OF IRON ORE
Englewood, CO – El Capitan Precious Metals, Inc. (OTC/BB: ECPN) announced today that it has signed a non-binding letter of intent with Asia Finance Corporation (“AFC”) to deliver up to 1.8 million tons of iron ore per year over a 10 year period. Based on a third-party report, the Company estimates it has approximately 25 million tons of iron ore in reserve at its El Capitan mine. AFC is the United States representative for a significant Chinese corporation. Completion of this transaction is subject to further due diligence by each party, negotiation and execution of a definitive agreement, and any necessary state or federal regulatory approvals.
“This contract, if consummated, should not affect our precious metals recovery,” El Capitan President, Chuck Mottley, said. “AuRIC Metallurgical Labs has done the research for us and over 80% of the precious metals values are in the non-magnetic ore. We plan to use magnetic separators to separate the iron ore from the precious metals and this will be the first steps of concentration. The second step of concentration will be leaching chemically the precious metals from the non-metallic ore.
“AuRIC Metallurgical Labs is designing the flow sheet and the process to recover the precious metals. In their tests of head ore, AuRIC has identified commercial values of platinum and palladium. We are beginning the process of filing for the necessary permits so that we are prepared if this comes to fruition,” continued Mr. Mottley.
“Under the terms of the letter of intent with AFC, we would receive the capital necessary to begin the operation without the need for further financing, assuming we are able to execute a definitive agreement for the transaction. We are ready for this challenge and are in the process of lining up the necessary personnel and equipment should we be successful in closing the transaction,” Mr. Mottley concluded.
El Capitan Precious Metals, Inc. is a nominally capitalized development stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as 13 mining claims and other assets known as the C.O.D. Property located near Kingman, Arizona.
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. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in El Capitan Precious Metals Securities and Exchange Commission filings; economic downturns affecting the operations of El Capitan Precious Metals; the inability to initiate or complete a possible sale of the El Capitan or COD properties or any other restructuring, offering, acquisition, disposition, joint venture or similar transaction; adverse financial performance by El Capitan Precious Metals; failure to obtain or maintain regulatory approval for products and services offered by El Capitan Precious Metals; the accuracy of geological and geophysical results including drilling and assay reports; the inability of the Company to develop and/or mine the El Capitan or COD properties; and the unavailability of financing to complete management's plans and objectives. The forward-looking statements contained in this press release speak only as of the date hereof and El Capitan Precious Metals disclaims any intent or obligation to update these forward-looking statements.
Jamie Phillips
Director of Investor Relations
jpelcapitan@cox.net
480-229-1356
Englewood, CO – El Capitan Precious Metals, Inc. (OTC/BB: ECPN) announced today that it has signed a non-binding letter of intent with Asia Finance Corporation (“AFC”) to deliver up to 1.8 million tons of iron ore per year over a 10 year period. Based on a third-party report, the Company estimates it has approximately 25 million tons of iron ore in reserve at its El Capitan mine. AFC is the United States representative for a significant Chinese corporation. Completion of this transaction is subject to further due diligence by each party, negotiation and execution of a definitive agreement, and any necessary state or federal regulatory approvals.
“This contract, if consummated, should not affect our precious metals recovery,” El Capitan President, Chuck Mottley, said. “AuRIC Metallurgical Labs has done the research for us and over 80% of the precious metals values are in the non-magnetic ore. We plan to use magnetic separators to separate the iron ore from the precious metals and this will be the first steps of concentration. The second step of concentration will be leaching chemically the precious metals from the non-metallic ore.
“AuRIC Metallurgical Labs is designing the flow sheet and the process to recover the precious metals. In their tests of head ore, AuRIC has identified commercial values of platinum and palladium. We are beginning the process of filing for the necessary permits so that we are prepared if this comes to fruition,” continued Mr. Mottley.
“Under the terms of the letter of intent with AFC, we would receive the capital necessary to begin the operation without the need for further financing, assuming we are able to execute a definitive agreement for the transaction. We are ready for this challenge and are in the process of lining up the necessary personnel and equipment should we be successful in closing the transaction,” Mr. Mottley concluded.
El Capitan Precious Metals, Inc. is a nominally capitalized development stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as 13 mining claims and other assets known as the C.O.D. Property located near Kingman, Arizona.
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. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in El Capitan Precious Metals Securities and Exchange Commission filings; economic downturns affecting the operations of El Capitan Precious Metals; the inability to initiate or complete a possible sale of the El Capitan or COD properties or any other restructuring, offering, acquisition, disposition, joint venture or similar transaction; adverse financial performance by El Capitan Precious Metals; failure to obtain or maintain regulatory approval for products and services offered by El Capitan Precious Metals; the accuracy of geological and geophysical results including drilling and assay reports; the inability of the Company to develop and/or mine the El Capitan or COD properties; and the unavailability of financing to complete management's plans and objectives. The forward-looking statements contained in this press release speak only as of the date hereof and El Capitan Precious Metals disclaims any intent or obligation to update these forward-looking statements.
Jamie Phillips
Director of Investor Relations
jpelcapitan@cox.net
480-229-1356
