Agoracom: Small Cap Investment - Fancamp Exploration - Posted this a while back...looks intuative now doesn't it!

Highly prospective exploration company

Resource projects cover more than 1,713 km2 in three provinces at various stages, including the following: hematite magnetite iron formations, titaniferous magnetite & hematite, nickel/copper/PGM, chromite, Volcanogenic Massive and gold.

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res-investor

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Posted this a while back...looks intuative now doesn't it!

posted on Apr 23, 2008 04:03PM

Re: I think its a bit early

Posted by: res-investor on April 07, 2008 12:04PM

In response to: I think its a bit early by Cooper123

To be spending the wining lotto proceeds before the numbers are called..... FNC has only hopes of proving an extension to the deposit untill the drill actually proves it up....

When that fact is proven or disproven the market will react.... either positively or negatively and all bargaining will be off the table.

Right now is prime bargaining time.... NOT can provide downside risk insurance and still provide upside potential.

I've see it happen too many times in my 20 + years investing where EGO and " I'm positive it's there" have not provided the investors desired result.

What happens to FNC if no deposit is found in the first round of drilling.... at what price will the financings be at then.... and what backup projects are in hand.

Seams cavalier to take the lotto winer mentality when FNC is trading at a 75 million market cap..... If I was on FNC board I would be raising about 6 million right now @ $3.00 via flow through with a full wt at $5.00 This would minimize downside risk as sufficent cash would be in the till for future work.... Sucessfull drilling would bring in the wts at a substantial premium to previous highs.

Bets verses investments

Posted by: res-investor on April 07, 2008 01:56PM

In response to: Re: I think its a bit early by Been There

I too have risk tolerances..... The difference between a bet and an investment is risk..... and the amount put at risk.

A bet involves a small amount of cash one is willing to risk for huge gains.... and on the opposite side of that is total loss of the bet. The lotto ticket.

Investments are usually a much larger wager, that has reduced risk and still retain upside potential.

Untill FNC minimizes some of the downside risk by either raising significant cash prior to drilling, taking some NOT paper in exchange for a part or all of the McFaulds property, I view FNC as a bet....

FNC's market cap is about 75 million...... that is a huge bet for managment to be taking with shareholders precieved value of the stock. That bets risk can be reduced if there are suffecient funds on hand to continue work should a direct hit not occur on the first go..... Minimal dilution of 2MM + 2MM wts would fulfill that criteria..... and this would change FNC to an investment rather than a bet.

PRB has done just that and thus I am weighted higher there as should the close proximity properties not yield the desired result, PRB has suffecent funds to ramp up the Victory project without any further dilution...... In spite of that my preference would be to sell those 3 properties to NOT for NOT paper... thereby eliminating the risk and retaining the upside potential.