El Capitan Precious Metals Inc (ECPN)

[Pan4Au]

Most small exploratory miners go out of business pretty quickly. Two observations.

First - that they have been able to remain viable for so many years says something. If they didn't have anything they would have folded years ago.

Second - if indeed they make an announcement that they are selling to a major company, say Newmont or Barrick - then that would send the stock easily over a buck in my opinion.

That last press release was nothing to sneeze at. "The Company is now in late-stage contracting with one of these buyers for the purchase of concentrates over the next 12 months, FOB the mine, at a purchase price of more than $180 million."

$180M? That's a lot of money. The property's value would be established. The gold and silver in the ore would be proven. I'm surprised that the stock hasn't gone higher. I guess people want to see a signed contract, not just the promise of one. But we may look back and say damn, should have bought more at a low price. Of course, being a penny stock, the opposite could happen too. This could be a pump. I've seen lots of that before! I hope not!