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El Capitan Precious Metals Renegotiates Contract Terms to Secure Higher Price Per Ton from Chinese Buyer
El Capitan Precious Metals Renegotiates Contract Terms to Secure Higher Price Per Ton from Chinese Buyer.
About this update from El Capitan Precious Metals Inc
[{"type":"text","content":"\n \n El Capitan Precious Metals, Inc. (OTCQB: ECPN) announced today that it \n is completing a renegotiated contract for the sale of El Capitan ore to \n its Hong Kong-based buyer. The most significant point in the revised \n agreement is an increase in the price per ton that the Chinese buyer \n will pay for the El Capitan ore. This is based on a higher \n precious-metals content than previously anticipated in the original \n contract.\n \n \n The Company also reported that it has procured containers for the \n shipment of the ore and that it will commence shipping immediately upon \n the contract completion early in July. Revenue will be recognized in the \n quarter beginning July 1, 2015. This is an update to the Company’s \n earlier guidance.\n \n \n Under the terms of this favorable new agreement, the buyer will take \n title to the ore shipment when it arrives at the port in China. This \n means that El Capitan will recognize revenue when the shipment arrives \n in China, as opposed to when the ore is loaded onto the shipping vessel \n at the U.S. port.\n \n \n Since the terms of the contract call for advance payment for the ore, \n the Company’s cash flow is not negatively impacted as a result of this \n schedule change.\n \n \n The Company’s ongoing mining activities will continue in support of \n monthly shipments called for under this renegotiated five-year agreement.\n \n \n As previously reported, additional buyers are being sought to purchase \n the expanded production available over the coming months.\n \n \n About El Capitan Precious Metals, Inc.:\n \n \n El Capitan Precious Metals, Inc. is a mining company based in \n Scottsdale, Arizona that is principally engaged in the mining of \n precious metals and other minerals. The Company’s primary asset is its \n wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which \n holds the 100% equity interest in the El Capitan property located near \n Capitan, New Mexico. www.elcapitanpmi.com\n \n \n Forward-Looking Safe Harbor Statement:\n \n \n The statements included in this press release concerning predictions of \n economic performance and management’s plans and objectives constitute \n forward-looking statements made pursuant to the safe harbor provisions \n of Section 21E of the Securities Exchange Act of 1934, as amended, ...