So does anyone have a guess what the final sales numbers will be on the pending smelt and refining of the concentrate? My guess is that SFMI will take in $500,000 or less.

Thanks, that's what I thought. So if someone was selling the stock short they could buy the shares from Centurion and use those to cover with. So if someone shorted it from 20 cents down to 8 cents and shares were put to Centurion at 8 cents they could resell them to the investors that were short at say 10 cents and make a better profit then the 3 percent discount and the other party could cover at a great gain without running the price up. Genius.

What I don't get is why they didn't do a private placement in the first place. I remember someone saying they were offered a private placement around 20 cents a share and IMO that would have been a better deal. Sure it could have been manipulated lower but at least they would have gotten all the money upfront. The problem with this financing its in $300,000 increments and the selling price of the shares aren't set.

I would like some opinions on number 3 from the plan of distribution from the SFMI S-1. I saw this yesterday and found it interesting. What kind of options can be written? Thanks.



Plan of Distribution

Investment Agreement / Registration Rights Agreement

On April 5, 2011, we entered into Investment Agreement and Registration Rights Agreement with Centurion Private Equity, LLC in order to establish a possible source of funding for us. The equity line of credit agreement establishes what is sometimes also referred to as an equity drawdown facility. Centurion is an “underwriter” within the meaning of the Securities Act in connection with the resale of our common stock under the Equity Line of Credit and is subject to Regulation M.

Centurion may sell some or all of the common stock it owns or may acquire under the Investment Agreement in one or more transactions, including block transactions:


1.


on such public markets or exchanges as the common stock may from time to time be trading;

2.


in privately negotiated transactions;

3.


through the writing of options on the common stock; or

4.


in any combination of these methods of distribution.

You crack me up! The reason I have focused on Centurion is because they're the major financing resource for SFMI right now. I think I've shown a very clear pattern of the type of companies that Centurion represents and the direction their share prices head after a deal has been signed. The truth is Centurion deals mainly with OTCBB companies and SFMI is one of those until they prove otherwise. If SFMI is in the driver seat why didn't they get a deal with a financing entity that caters to a higher caliber of company? I'm just sayin'. JMHO

The problem is will they be able to get around $7 million from SFMI's past financiers at this level and the same 7% interest rate? My opinion would be they would have to go the convertible route then.

Thanks Rocket. You have the same feeling I do about SFMI. Basically will execution of their business plan be sufficent enough to counteract dilution? The positive side of me says I hope but the realistic side tells me to keep a wary eye on Centurion. They are in business to make money and my opinion is they will sell shares as soon as possible.

Here's a list of companies that Eric S. Swartz (managing director of Roswell & Centurion) has been involved with prior to and after signing a deal with SFMI. So far the only company that accused an Eric S. Swartz company of short selling their stock was Alternate Energy Holding but it was never proven in court. Some investors in SFMI wanted me to find more than the 10+ examples of companies that the financing entity was involved with to establish a pattern so this is it. Hopefully SFMI will be more successful then these companies on the list.





http://www.secinfo.com/$/SEC/Name.asp?S=eric+s.+swartz&List=S

TD, "operating fine now"? Does this mean your opinion of SFMI has changed? You called it right on the recent run up to around .095 and then the pullback. What do think is in store for SFMI in the next month? Thanks.

The type of financing I would like to see is an investment from a company like Scorpio Mining. Perhaps JV with them for funds to complete the project. It would be a value added combo because the financing entity is also a successful mining company. If SFMI has to give up shares I'd rather go this route and know our partner is on our side.

I think I'm beginning to understand Centurion"s financing game plan. I don't know if it will happen the same way for SFMI, but I have updates on other companies I have previously mentioned as well as a new financing.

My first update is on the Centurion financing of Mabcure. When the deal with Centurion was announced, their stock was at .44 a share on January 18th, 2011. It now sits at .21 a share. What caught my eye was recently they "Put" shares to Centurion at .21 a share. Wow! Why didn't they do the "Put" when their shares were more than double what they are today? Sounds an awful lot ilke SFMI except we haven't seen an S-1 yet. So if that wasn't enough dilution for Mabcure they then did a Senior Secured Convertible Debenture at .165 a share roughly 20% lower than the current share price. Why not just "Put" more shares in the .20's? Sounds to me like someone was making money on the way down and covering at the bottom. I apologize for not having all the links but you can research this example by looking at 8-K's etc.

Just a couple of other updates are DC Brands which was at .07 February 2nd, 2011 when a Centurion financing was announced and it now sits at .0101 a share and Minerco was .077 in February 2011 and they're at .004 a share now.

A new financing agreement for Centurion I was researching this morning was announced on June 8th, 2011 with Kurrant Mobile Catering (KRMCE.OB). Here's the crazy part, KRMCE only has a market cap of $166,000 but Centurion signs a deal for $10 million! OMG!

Do you see where I'm going with this? These people don't seem to care who they set up a financing deal with as long as they make money. I sincerely hope SFMI does well but they need to stay away from the sharks.

I think I'm beginning to understand Centurion"s financing game plan. I don't know if it will happen the same way for SFMI, but I have updates on other companies I previously have posted on this board and the other one that stipulates you can only talk about butterflies, happy rays of sunshine, and nothing remotely negative about the company. As a disclaimer I do own 150,000+ shares of SFMI.

My first update is on the Centurion financing of Mabcure. When the deal with Centurion was announced, their stock was at .44 a share on January 18th, 2011. It now sits at .21 a share. What caught my eye was recently they "Put" shares to Centurion at .21 a share. Wow! Why didn't they do the "Put" when their shares were more than double what they are today? Sounds an awful lot ilke SFMI except we haven't seen an S-1 yet. So if that wasn't enough dilution for Mabcure they then did a Senior Secured Convertible Debenture at .165 a share roughly 20% lower than the current share price. Why not just "Put" more shares in the .20's? Sounds to me like someone was making money on the way down and covering at the bottom. I apologize for not having all the links but you can research this example by looking at 8-K's etc.

Just a couple of other updates are DC Brands which was at .07 February 2nd, 2011 when a Centurion financing was announced and it now sits at .0101 a share and Minerco was .077 in February 2011 and they're at .004 a share now.

A new financing agreement for Centurion I was researching this morning was announced on June 8th, 2011 with Kurrant Mobile Catering (KRMCE.OB). Here's the crazy part, KRMCE only has a market cap of $166,000 but Centurion signs a deal for $10 million! OMG!

Do you see where I'm going with this? These people don't seem to care who they set up a financing deal with as long as they make money. I sincerly hope SFMI does well but they need to stay away from the sharks.

Here's a thought I've been pondering for several months. My thinking is that SFMI is setting up another sizeable financing. My opinion is that the Centurion financing is actually the back up financing. After researching many Centurion deals in the last six to seven months several of the companies that hooked in a deal with Centurion were followed by the companies announcing other significant financing. Perhaps securing the Centurion deal gives added credibilty and security to a lender who wants to do a debt financing rather then a convertible. Just a thought.

Nice analogy, just played some ping pong last night as a matter of fact. The problem is the ball eventually falls off the table. The problem with your assessment is that you have to be onboard or not. My assessment is that you don't have to be. Trade if you think you're smart or hold and keep buying if you're smart. Different strokes for different folks. I've done a little of both and not totally disappointed. Another thing in life is to be humble. Don't think just because you are articulate in writing means you are smart. The volume and price appreciation in SFMI tells the real story.

Wowsa! What a week. Carmine, PM please.What's the scoop bro'? Got back in at 69 and 7. Tia.

So in your opinion what will it take for PQ to see the light and let RS work his magic? Or is RS slowly working PQ to get us to the promised land?

Possibly but maybe only a trade. TD seems to be on top of this. My thinking is that we will see a lot of volatility up and down while SFMI sells shares to support the confirmation phase.

I can't believe the lack of attention given to the several million share trades on Friday. Looks to me like short covering. Ask yourself why would someone sell several million shares at .065 in AON trades with the shares trading near .07 and moving higher? It definitely helps the short who doesn't want the sp to skyrocket. I've wondered about these types of financing deals if you have one party that sells the stock short and after the stock falls precipitiously the second party then gets the shares when the lender needs the cash. Then the second party who receives the shares from the lender then sells them on the open market at an AON to the party that was short, thus covering. Sounds like a sweet deal.

This is simply a scenario that came to mind and is in no way what actually might have happened.

TD, did you get your 500,000 today? Open market or private transaction as in AON?

Maybe he thought it was best to take shares because he wasn't sure he would get paid? The $7.2 million is all allocated for drilling, none for his pay. The mill is not producing enough cash to cover other expenses so it would seem the prudent move. Also, aren't other management members deferring their salaries? Just a thought.

Thanks.

So is 3.25 million ounces of Au the maximum they plan on defining? I've been doing a lot of reading and it seems they want to define that amount then really hit it hard on production. So is that the maximum amount of Au they think is there or just the goal by 2013? Sorry for the newbie questions but this company looks real interesting to me.

I just wanted ur opion on any potentialpitfalls u see. Thanks.

Thanks for your response. I'll be in on monday with a few.

Hey RB; looks to me like you have a real winner here vs. PQ's co.'s in Idaho. I looked over the 10k and the most recent 10Q along with 8K's etc and I don't really see any shady dealings. With 93 million shares fully diluted (including the preferred shares and warrants), $20 million in the bank, they've massively drilled with good results, they're retrofiting the heap leach plant, is there anything I'm missing? Sounds real good but is there anything lurking that is negative that I'm missing? Winfield seems like a great major shareholder and he seems like he wants the value realized not playing the games other major players like to do. You or others don't have to tell me the positives, I would like to know what the possible downfalls are. Thanks, I do appreciate your response.

I only have about 15,000 shares now. I dumped between 8-9 cents. Ticked me off because when the financing was announced at around 15 cents I was right that the sp would drop drastically, I just didn't know how much. Oh well, itsonly money. LoL. My opinion is that we will head down to 3-4 cents because SFMI will need more that $7.2 million. They will dilute more and more because they spend $3 million every quarter not counting the upcoming confirmation phase. I don't think the ore/tailings piles will be sufficent for normal company expenses.

You are the voice of reason. Neither here nor there. The name of the game is to make cash.

This sounds a little suspicious to me. Mind games IMO are being played.

OMG,

One way or another Centurion will make money. People on this board and the other board gave me a load of stuff for even bringing up the fact that if SFMI's sp is low like now that significant dilution will occur. That was at .14-.15 a share. Well here ya go. I ain't no basher just a jaded shareholder like Carmine. BC is the voice of reason today and so was another poster. Like I said before, Centurion is possibly collecting cash or shares for giving "advice" too. Btw, how does SFMI check to see if a certain financing entity isn't shorting. Oh that's right, we're just supposed to believe them. Another stock I was invested in was shorted despite covenants to the contrary. if anyone is "big" enough to debate feel free to post on the "other board" and i'll reply here.

Centurion doesn't have the no hedging clause but Lincoln does just to clarify (Lincoln is just another competitor to Centurion). My opinion is that it's a loan by a different name to SFMI. Please prove me wrong if you can. To prove me wrong we will need to see a breakdown of the entities receiving cash from the "advice on debt and equity capital raising" from the 10-Q or 10-K. Hopefully this point will be moot and SFMI will use the $7.2 million wisely.

TD;

Seems to me you've been right on target with your assessment of SFMI. Looks to me that if SFMI is to move forward they need to announce they have a drilling company under contract and they plan on drilling the hell out of WEM asap. It amazes me that after the results of the OSO Pierre still talks glowingly about the tailings. The market has spoken and in my opinion the tailings experiment is over. Drill baby drill!

TD, what's up? I've been enjoying a few shots of "Makers" tonight and contemplating a few things. The first is the dicotomy of the physical silver market versus the paper silver market. This is no real big surprise where the paper market has fallen, I expect the bottom in paper silver to hit around $31 and rebound after that. As for the physical I see where First Majestic still has a price of $43 an ounce advertised. Quite a spread and perhaps the split between reality and the artificially shorted paper silver is finally happening. As for SFMI my real concern is dilution. I see the pictures from Bobby Joe and Mem22 and it all looks good but what some people don't realize is that the share count is important too. What's your thoughts on Centurion and the decline in the SFMI share price? My gut feeling has been that Centurion will pick up shares at a bargain (.11-.12) and at that point the stock will then move up again. Btw, thank you for your commentary.

Did anyone notice the last trade of the day? It was for 2,012 shares. Maybe its code for good things to come in 2012. Lol

So TD, why do you think we haven't had any news? Thanks.

TD, any comments on the SFMI board meeting? You've been awfully quiet but your fingers are probably cramping up from counting your paper profits on the physical silver you own so it must be difficult to post. Lol

Doing a little DD tonight I see that on April 19th, 2010 SFMI closed at .15 (as per Yahoo). SFMI closed today at .155. At this time last year spot gold was at $1136 and today it hovers at $1499 nearly 32% higher than last year. Why don't we have a higher sp? The big difference is that SFMI has 308 million shares outstanding today and last year they had between 200-250 million shares outstanding at this time (from what I recollect). So does 30% more dilution cancel out a 30%+ rise in the gold price over a years time? IMO it can't be disputed that SFMI is building a good infrastructure but you do need to update your faithful shareholders even if they are retail holders. The bottom line with me is that SFMI will be bought out at some point in the next year or two so all this stuff is really immaterial if you're a long term holder. As an investor I would like to see the slow steady climb and progress being made rather than the pump and dump.

Thanks, we appreciate your information.

Bobby Joe,

Any word on how the hearing went with the county commissioners? Tia.

I did go to the site but found nothing. If it was very "positive" (pun intended), then we would have been updated by now. RK has proven thus far to be unreliable.

It amazes me how nobody has given us an update of the hearing yesterday in Owyhee County. Either it's not important or sources have dried up.