by joe at yahoo board
4 hours ago
Here is the skinny on ECPN: Currently, the "Deal" the company has for the remaining 2200lbs of concentrates is NOT with a refinery but with a 3rd party who will act as a middle man to a Canadian refinery. Even though the December 8th press release states "consummates a deal with a refinery" that is not the case. In fact, the subsequent press release put out by the company conveniently leaves out the agreement is not with a refinery but a "buyer". Furthermore, ECPN's agreement with said "buyer" was not being shipped to them and the title was transferred at the end of the year. It is then the "buyers" responsibility to ship it to the Canadian based refinery. If you're asking who the "buyer" is, it's none other than Larry Lozensky (who by the way owns Gulf Shores Mining, LLC with David Davidson and Arly Richau). In addition, ECPN is hoping to get paid by the end of the month for the concentrates sold, however there is a very good chance that will not be the case. Several board members have expressed little optimism surrounding getting paid and are praying that it actually happens.
As for the 10-K, everyone knows at this point the company has missed two deadlines. The reason being that their Audit firm, Malone Bailey, has fired them as a client. The audit firm was not happy with the way ECPN has been doing their financials over the past 18months, mainly pertaining to the pilot plant operation, and asked for several disclaimers releasing them from liability since they disagreed how the company was preparing their financial statements. ECPN had no choice but to find another firm to help them properly file their documents. There is little doubt that the company will address this issue and explain why they were told to take their business elsewhere.
In a previous press release, the company stated the Shareholders meeting for 2018 would be held in March. That is now not true. Without notifying their shareholders, the board has decided to move the meeting to May, although they have yet to set a date, time or location. Nice of them to inform their shareholders since they publicly stated they were going to have one within the next 6 weeks.
Lastly, Clyde Smith, long-time board member, has resigned from the board last week. The reason is because he questioned David Davidson's process for refining/smelting and asked for metrics and outputs to support Davidson's claims. David Davidson has repeatedly denied Clyde Smith access to his process and the outputs, claiming it to be proprietary. Funny, when Betty Crocker sells a cake in a box, the time and temperature are not what is proprietary, it's the ingredients in the box. So in David Davidson's case, the materials provided by ECPN is the only thing that is proprietary, not the way it is refined/smelted. If Davidson has such a patent on his procedure, he should provide the documentation. Moreover, the equipment Davidson used was paid for by ECPN which should not limit anyone from ECPN to verify the outputs.
In summary, ECPN delayed their 10-k due to a dispute with the audit firm (MaloneBailey), entered into an agreement with Larry Lozensky which they may or may not get paid on time (or ever) and had a long-standing board member who helped provide validity to their mine site due to his skepticism over David Davidson's process. As a shareholder, it's appalling and criminal in which the way ECPN's management has conducted business. The SEC needs to investigate immediately and hold the people responsible for this scam accountable.
Oh, and I'll leave you with this little nugget. About two years ago Statpleton lent the company $30,000 in which he was provided 200,000 shares and accrued interest at 18%. Last year the company renewed the agreement and awarded Stapleton another 200,000 shares. It's amazing to think this company can't get a loan from a bank for $30k for less than 18%. I guess stapleton is just a softy and gave ECPN a sweetheart of a deal.....
