Charles Mottley, president and CEO of El Capitan Precious Metals Inc., tells GlobeSt.com that his firm reached an agreement with its majority shareholder, Scottsdale-based Gold and Minerals Co. Inc., to acquire the rights to the site, known as the COD Property, in exchange for 1.2 million shares of El Capitan common stock. The stock is currently valued at about $1.20 a share, making the price for the property more than $1.4 million.
Mottley said his firm will begin a mining operation on the site within the next three months. The property, which is estimated to have at least $150 million in gold, silver, zinc and lead reserves, was last mined in the early 1980s by Lanco.
Located in Mohave County, the property consists of 13 mining claims leased from the US Bureau of Land Management. The ore deposits were located in 1878 and mined sporadically through two underground shafts leading to seven levels.
In a separate move, Mottley said his firm has put its 200-acre El Capitan property near Capitan, NM up for bid through IBK Capital Corp. of Toronto. The company is seeking a minimum of $650 million for that property, located in Lincoln County in south-central New Mexico.
"It's a very rich property," Mottley said of the El Capitan location, which holds large deposits of gold, silver and platinum. He said 40 of the world's largest mining companies have been invited to bid on the site.
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