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El Capitan to sell 600,000 tonnes of ore from New Mexico project

El Capitan Precious Metals Inc. said Oct. 5 that it has executed its agreement with AuraSource Inc. to sell 600,000 tonnes of head ore over the next 12 months from the namesake El Capitan polymetallic project in New Mexico.

The company's revenue will clock in at US$180 million yearly at a cost of about US$30 per ton for mining and loading. The agreement is contingent upon right-of-way road access and AuraSource's ability to secure its buyer and financing for the prepayments to El Capitan.

The agreement is renewable for five additional, one-year terms.