Silver Falcon Mining Inc. (fka SFMI)

[Imperial Whazoo]

It also is a fact that any and all other developmental stage miners have to take on considerable dilution to progress through the necessary steps of which each and every one of them has to go.

It always strikes me as being similar to criticizing me for aging. Everyone ages. Nobody is exempt.

Likewise every company that is attempting to develop a mining potential has to fund the efforts via issuance of diluting shares and/or debt.

EVERY SINGLE ONE.

The criticisms of SFMI for all this "TERRIBLE" diliution fall on deaf ears with me because I'm smart enough to realize that, caompared to any alternative method, the method "Frenchie" has chosen is the best he could have chosen. The other approached are 10000000% worse in almost every instance when they are the approaches taken by similar companies in similar circumstances.

Period.

The shares he issued are not free trading, by and large. Just read the SEC filings and it will smack you across the jaw-bine like a Mike Tyson left hook.

I could care less that "Frenchie" issues his family shares. You gotta fund it some way and the alternatives are 10000000 percent worse for shareholders: Issuance to outside parties that are all over the place in every other newbie mining company.

These outside parties are vultures and carnivores. Always are. Always will be. Fact, Jack.

It is clear I satnd alone in NOT thinking it wrong for "Frenchie" to issue shares to insiders and family members. I appear to be alone when I fail to crumple like a sack of dirty laundry at the horrid aspect of family members enriching themselves by getting largess from big daddy "Frenchie". Fact is, I trade this type of company for a living, and I have done so for nigh on 7 years.

I have seen a hundred instances of where a company issues shares to fund their operation and the entities to whom they issue them are vicious traders who screw the company coming and going.

Thank God that SFMI has not done this, or employed pum-'n-dump newsletters to pump up the share price. Thank God for this blessed example of a rare quality: the wisdom to take the slower route and to keep controo and so forth.

I know funding necessary. I also recognize that, since every start up has to fund somehow, dilution is likely to be necessary. So what.

What matters is not that dilution happens. WHAT MATTERS IS THE TYPE OF DEALS CUT TO TAKE ON THE NECESSARY DILUTION.

Frankly, I have never had the least bit of trouble comprehending that it is 10000000% better to issue shares to inside parties where the fact is (AND IT IS A FACT, BOYZ 'N GOILZ) that the shares are restricted and are not free trading....

.....than it is to do like the vast majority of newbiE companies who do a land-office business in selling their soul to carnivores and vultures who destroy the company in the process of allegedly "funding" it.

Funding has to come frome somewhere. Rather than to just lump SFMI together with all start-up mining companies, as though they are all the same, the legitimate thing to do, IMHO, is to legitimately describe the actual deals being done that "dilute": SFMI's "dflutive" shares are not free-trading, open market shares.

They are issued to insiders.

I read each and every SEC filing, and this is just a fact. By far, the facts found in all of the filings tell the simple story that SFMI's insiders are fattening thier nests with shares, but these shares are not free-trading. Simple as that.

So, OK.... big deal that there is this growth in shares. The alleged "diluttion" of shares that can trade will only happen if the holders file the appropriate paperwork with the SEC, which has not been done.

If they ever do the conversion to free trading shares, you are 100% certain to see it because they will file SEC filings and it will be obvious.

And also, there would be a tell tale flag in the volume of traded shares too. There would be filings and there would be huge increases in volume.

A huge majority of start-ups do it another way. They sell, at 50 cents on the dollar or worse, to raise money from vultures who turn around and sell in volume on the open market. These types of deals are not done at SFMI and these kinds of dilutive events are not happening. They never have, either.

If any small start-up ever showed up that was well enough funded to not have to dilute in some fashion to raise money, I'd eat my Oldsmobile for dinner tonight. The fact is that every company in SFMI's place in the universe of trading companies faces the need to figure out how to fund themselves.

The only choices are these:

Sell off the land they hold.

Sell shares at a discount to outside parties who are always vultures looking to gut the company.

Do pump-'n-dump deals with newsletters in exchange for dilutive shares.

Forward sell the gold/silver/whatever...

OR

TO DO IT LIKE SFMI HAS DONE, WHICH IS TO CONTROL IT BY ISSUING NON-TRADABLE SHARES TO INSIDE PARTIES WHO WILL NOT CUT-'N-GUT THE COMPANY

I like the controled way they have done it.

I accept the necessity of funding via issuance of restricted shares to insiders.

I like the fact that the piles of resources have not been forward sold.

I like it that no pump-'n-dump email newsletter writers have entered into the picture around here.

Well done, I say.

Fund the operation, "Frenchie". Fund it in such a way that you don't deal with vultures. Choose, as you obviously have done, to grow at a slow pace rather than to pump this puppy like so many others do.

Keep the share issuances restricted. Keep control over who gets to participate, even if doing so makes progress happen more slowly than it otherwise would.

Keep on keeping on, my man. I revel in both being right about this and in being all but alone in grasping that this approach is anything but fodder for criticism.

I do not posture and prance as though I think every decision he has made is smart. For example, I wish he had drilled the top of the mountain last summer. And the web camera should have been re-installed on the site so it could be shown that the ste was growing ansd in use. And the Melba thing was dumb, in spades.

And I don't like the PR dude at all. Nor do I think my dog would write PRs as bad as that guy generates, LOL.

But I have been in other companies who succeeded in building their minimg operations via pump-'n-dumps, or via vulture company share issuances, or via sell-off's of claims, and so forth. The few that actually made it were more diluted at this stage of their life than SFMI is and they also failed to get their mining operation up any faster than has SFMI.

Approval of "Frenchie" from me is not a pure-D not of approval. I am not even close to being a fan of a lot of what has happened. I do not want to be mistaken for a blind-eyed zealot.

They mucked it royally more than I like, but as to this dubious charge that the company has looted the company by issuance of dilutive shares to insiders, I think that charge is pure-D nonsense. To do it any other way would have been 10000000% worse, IMHO, and the way they did it has not lost control or put vast quantities of free trading shares out there in the market, and I think it is very smart for "frenchie" have to done it this way.

Good. I approve of the way shares "dilution" has been handled.

So, Merry Christmas, LOL.

And look for a VERY Happy New Year, folks.

I think excellent events are on the cusp, right now and in the next 6 months time, and I look for a very Happy Ney Year indeed.

Imperial Whazoo