Martin Tsvetkov

El Capitan Precious Metals, Inc. (OTC:ECPN) To Enlarge its Main Property, Stock Gains 9%

by Martin Tsvetkov October 26, 2011
36ECPN_chart.pngYesterday, El Capitan Precious Metals, Inc. (OTC:ECPN) announced it had filed claims for a total of 720 acres situated in adjacent properties. As it seems, the decision, which was taken after a thorough geological evaluation, made for a minor step up on the stock market.

The latest market session saw ECPN rise by 9% up to $0.48 per share on a volume of 630 thousand. Though rather moderate, the surge hinted at a possible uptrend. Considering that the latest recent peak (reached on Oct. 12) is not as high as the one registered in late-July, however, the prospect of a breakthrough is as vague as it could possibly get.

6ECPN_logo.pngAlthough ECPN has been exploring its New Mexican El Capitan property for quite a while now, it has yet to strike it lucky by finding deposits of such metals, which does not guarantee a quick success in the aforementioned 720 adjacent acres.

As of Jun 30, 2011, ECPN's balance sheet contained:

  • cash reserves of $146K;
  • net working capital of $75 thousand;
  • quarterly net loss of $558 thousand.

The El Capitan property has been evaluated at approx. $178 million. Nevertheless, the company will hardly be able to sell it at that price unless ECPN starts generating some actual revenue out of its exploration.

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