capital rasing on the way..., page-2

Yes a capital raising is highly likely and welcome although it will dilute the shares of existing holders.

Falcon has limited funds in the bank and is booked to start drilling at Collurabbie this quarter (April?). As it now has 100% of the tenement it has to meet 100% of the cost of drilling.

Shareholders are naturally optimistic about the potential of Collurabbie, but who is to say the drilling this time will hit the jackpot. It may take quite a few drilling sessions to prove up marketable ore body and that will cost megabucks. If Falcon does not have funds to hand it will become a one shot wonder and shareholders will find the company sold out from under them. It is imperative that Falcon has funds on hand to pursue later drilling.

Trade in FCN shares is thin and a large scale sale would likely cause the market to crash. My guess is that Falcon will make a placement to institutions and/or sophisticated investors likely to hold the shares and so maintain the share price. Again my guess is 20 to 30 million shares.

If Falcon has $5 or $6 million in the bank shareholders can look forward to some exciting times.