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Post by Franko10 ™ on Dec 13, 2004 10:02:25 GMT -5
El Capitan Precious Metals Signs Joint Venture Agreement With MG East, LLC
PHOENIX, AZ, Dec. 13, 2004 (MARKET WIRE via COMTEX) --
El Capitan Precious Metals, Inc. (OTC BB: ECPN) announced today that it has entered into a Definitive Joint Venture Agreement with MG East, LLC on a 50-50 basis to install a portable screening and crushing plant on the Company's Rainbow Valley Mine site in Arizona. The project will produce iron and its by-product, sand and gravel.
MG East and its related companies are privately held with more than 30 years experience in project management, mining and material processing, the manufacture and sale of related products (sand and gravel asphalt, concrete, etc.) engineering, and highway and building construction. MG East also brings to the joint venture a contract to supply 140,000 tons of crushed stone for a highway project in Arizona, which begins in January 2005. El Capitan will contribute $100,000 in working capital to the joint venture.
Chuck Mottley, El Capitan President and CEO said, "This Joint Venture contract with MG East should enable us to begin cash flowing in January 2005. The highway contract should be completed in 90 days and at which time the equipment will be moved to our Rainbow Valley Mine site. We are hopeful the necessary permitting for the mine will be completed by that time.
"The sand and gravel produced on the Rainbow Valley Mine site will be marketed by MG East to the Arizona and California markets with any profits split 50-50 between the two companies. The iron ore, separated out by magnetic separators, will remain the property of El Capitan. We anticipate the iron ore will be shipped to the Chinese market to be sold on long term contracts or on the spot market. Our drilling and testing should be completed by the end of December 2004. We are presently expecting certain Chinese steel company executives to inspect the Rainbow Valley mine and meet with railroad representatives some time in January 2005. Any shipments of iron ore are subject to execution of sales agreements as well as rail car availability," continued Mr. Mottley.
"Up to this point El Capitan has been an exploration and development company and now that we are entering into production and anticipating positive cash flow, we are very optimistic about the future of El Capitan Precious Metals, Inc," stated Mr. Mottley.
El Capitan Precious Metals, Inc. is a development stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. Property located near Kingman, Arizona. In addition, the Company owns 100% of the Rainbow Valley and Weaver mines near Phoenix 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. 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 company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the company's products; competition from iron ore producers worldwide, which producers have greater resources and more established operations than those of the company; the company's ability to arrange transportation from the its mining properties to ocean ports on satisfactory terms; the company's ability to obtain or maintain regulatory approvals; the company's ability to obtain financing for the commencement of mining activities on satisfactory terms; 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.
For Further Information Contact:
Chuck Mottley
PHOENIX, AZ, Dec. 13, 2004 (MARKET WIRE via COMTEX) --
El Capitan Precious Metals, Inc. (OTC BB: ECPN) announced today that it has entered into a Definitive Joint Venture Agreement with MG East, LLC on a 50-50 basis to install a portable screening and crushing plant on the Company's Rainbow Valley Mine site in Arizona. The project will produce iron and its by-product, sand and gravel.
MG East and its related companies are privately held with more than 30 years experience in project management, mining and material processing, the manufacture and sale of related products (sand and gravel asphalt, concrete, etc.) engineering, and highway and building construction. MG East also brings to the joint venture a contract to supply 140,000 tons of crushed stone for a highway project in Arizona, which begins in January 2005. El Capitan will contribute $100,000 in working capital to the joint venture.
Chuck Mottley, El Capitan President and CEO said, "This Joint Venture contract with MG East should enable us to begin cash flowing in January 2005. The highway contract should be completed in 90 days and at which time the equipment will be moved to our Rainbow Valley Mine site. We are hopeful the necessary permitting for the mine will be completed by that time.
"The sand and gravel produced on the Rainbow Valley Mine site will be marketed by MG East to the Arizona and California markets with any profits split 50-50 between the two companies. The iron ore, separated out by magnetic separators, will remain the property of El Capitan. We anticipate the iron ore will be shipped to the Chinese market to be sold on long term contracts or on the spot market. Our drilling and testing should be completed by the end of December 2004. We are presently expecting certain Chinese steel company executives to inspect the Rainbow Valley mine and meet with railroad representatives some time in January 2005. Any shipments of iron ore are subject to execution of sales agreements as well as rail car availability," continued Mr. Mottley.
"Up to this point El Capitan has been an exploration and development company and now that we are entering into production and anticipating positive cash flow, we are very optimistic about the future of El Capitan Precious Metals, Inc," stated Mr. Mottley.
El Capitan Precious Metals, Inc. is a development stage company that owns a 40% interest in the El Capitan mine located near Capitan, New Mexico as well as a joint venture and 20% ownership of 13 mining claims and other assets known as the C.O.D. Property located near Kingman, Arizona. In addition, the Company owns 100% of the Rainbow Valley and Weaver mines near Phoenix 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. 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 company's ability to successfully complete contracts for the sale of its iron ore and other products; fluctuations in world market prices for the company's products; competition from iron ore producers worldwide, which producers have greater resources and more established operations than those of the company; the company's ability to arrange transportation from the its mining properties to ocean ports on satisfactory terms; the company's ability to obtain or maintain regulatory approvals; the company's ability to obtain financing for the commencement of mining activities on satisfactory terms; 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.
For Further Information Contact:
Chuck Mottley
