El Capitan Precious Metals, Inc. (OTCPK:ECPN) announced that it has entered into a securities purchase agreement for a convertible promissory note with a par value of $99,000 for gross proceeds of $90,000 on December 18, 2017. The transaction involved participation from L2 Capital, LLC. The note was issued at a discount. The note carries a coupon of 7% per annum with six months of interest guaranteed. The note will mature on June 18, 2018. The note will be convertible into common shares of the company and have a conversion price of $0.07 per share. The company can prepay the note by paying 120% of the prepayment amount by giving an advance notice of prepayment 48 hours prior to the date of such payment to the investor. In case the company defaults, the note may be converted into the common shares of the company at the option of the investor at a per share conversion price equal to lesser of $0.07 or 60% of the average of the three lowest trading prices of the company's shares during the 14 days prior to the conversion and the company will also pay the costs of collection, including reasonable attorney's fees. The company issued 1,250,000 shares as a commitment fee to the investor.