"Usually when a mining company sells a group a large offering the stock heads lower for a while and then it recovers."
That's just what happened yesterday with SFMI's price. Financing is a fact of life in the junior world. Mining is a capitol intensive industry and we are fortunate that the terms of this arrangement are such that it will allow this company to fast track growth. An example of what access to money can do for a companies share price is the recent PP for Aurcana to move them forward in developing their shafter silver mine in Texas. The stock was trading in the .40's, the pp announced for 195 mil. shares at .31 plus half a warrant. This tripled their outstanding shares. A few were pizzed, panicked and sold. The stock dropped to .35 in the morning, then closed positive and has never looked back, hitting $1.10 this week.
The biggest hurdle for juniors is accessing dollars. Now that SFMI has this line of credit in place big money will notice and I expect that the trend is about to change here with strong accumulation going forward.
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