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El Capitan Precious Metals Inc (OTCMKTS:ECPN) Explodes Up The Charts

El Capitan Precious Metals Inc (OTCMKTS:ECPN) Explodes Up The Charts
Written by
Alex Carlson
Published on
August 15, 2016
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El Capitan Precious Metals Inc (OTCMKTS:ECPN) has made an explosive move higher. This comes as shares consolidated around the $.05 level for quite some time. There a number of reasons for the move higher. The key is will the rally continue?First up a little background on the company. El Capitan Precious Metals, Inc. is a mining company based in Scottsdale, Arizona that is principally engaged in the mining of precious metals and other minerals. The Company’s primary asset is its wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which holds the 100% equity interest in the El Capitan property located near Capitan, New Mexico.There are a number of reasons why shares of ECPN have exploded higher. First is some of the smartest investors on Wall Street have been piling into precious metals. Among the latest big players buying precious metals include billionaires George Soros, Stanley Druckenmiller, and John Paulsen. The uncertainty over the UK’s decision to leave the EU will linger for quite some time and will keep the Federal Reserve on the sidelines from raising interest rates. This is bearish for the US dollar and a positive for precious metals.While the big players on Wall Street buy gold, smart penny stock investors can buy junior gold miners. Here is where the most money can be made because of their blue sky potential. The big miners like Barrick Gold, Newmont Mining and Goldcorp all started off like ECPN with small market caps. Today they have market caps of $24B, $20B, and $15B respectively.Second is that El Capitan has been active on the news front. Within the last month, we've had four press releases from the company. This is the most ever from the company in such a short period of time, which leads us to our third reason for shares climbing. Investors are thinking that a deal is in the works. There's even been chatter on the message boards that a deal is in the works for a buyout around the $.30 level. While we can't confirm or deny if these rumors are true, ECPN has confirmed that something is indeed in the works. The company said last week:

"...the Company has reorganized its management team to be highly transaction focused in anticipation of current opportunities, negotiations, and agreements...The Company is currently involved in the late stages of negotiations and expects to announce its first major transaction prior to the Shareholders’ Meeting on September 28, 2016 at The Inn of the Mountain Gods in Ruidoso, New Mexico."

El Capitan has also made significant advances in the Company’s precious metals recovery process to produce gold and platinum beads that are 99% pure, from its ultra-fine concentrates. The company says that the new recovery process is the result of recent collaborations and is both replicable and scalable. According to Chairman John Stapleton, "this critical step comes on the heels of other recent announcements by the Company that have paved the way for precious metals production and cash flow."Helping to back this statement up is that Logistica U.S. Terminals, LLC, the Company’s processing agent, has placed in excess of seven tons of precious metals concentrates into a bonded COMEX warehouse in the name of El Capitan Precious Metals, Inc. The warehouse receipt states the value of the concentrates to be $3.7 million. These concentrates are waiting to be processed and sold.Currently trading with a market cap of $61 million, ECPN is an exciting story for precious metal investors. We expect the next news to be either a buyout or a joint venture with a major player. Last month, the company said discussions with joint venture partners were ongoing.

The significance of current activities has generated initial discussions with large potential joint-venture parties that would and could, immediately, take the Company’s current operations to a much larger scale. According to Stapleton, these ongoing discussions have been very positive, demonstrate notable interest, and give the Company optimism for its near future.

We will be updating our subscribers as soon as we know more. For the latest updates on ECPN, sign up below!Disclosure: We have no position in ECPN and have not been compensated for this article.

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