TSXV:FCO.H - Post by User
Comment by
JohnEStromJron Jul 01, 2010 7:15pm
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Post# 17238041
RE: News Update
RE: News Updatefocsle,
That's wasn't much of a news release! And nothing we didn't already know.
FCO has been "exploring" funding options - for many, many months. Their last NR mentioned they were considering a variety of options - which is to say they are eager for anything and will look at everything. Trouble is, unless we get a decent loan that the company can repay in a timely fashion, we're screwed. The Coalcorp loan will eat us alive.
Sure, it's only $8 million [PLUS 12% interest (for now) PLUS 1,333, 375 common shares PLUS 666,687 warrants] but how can we pay that loan if we're not in production? And how can we get into production when we look weak and desperate? [the Coalcorp loan proved that]
As for the price of cobalt, one shows cobalt selling at $22+ per lb - per link from FCO] and the LME shows cobalt selling for $17.44 per lb. [admittedly LME only has 99.3% pure but the price of the two is VERY close] So why the discrepancy? I don't have an answer but I do know FCO only shows that which favors THEIR position and hides taht which doesn't - like those 50 million "preference" shares they can issue without our vote. There are slightly over 35 million common shares outstanding right now. And silence from FCO management - after engorging themselves on 845,000 "new" shares of FCO [roughly 2 1/2 % of the entire company] as a reward to themselves for doing such a good job. Congrats, guys, on fleecing the shareholders.