Falco Resources (FPC.V) has announced its intention to raise C$10M in a private placement to advance the Horne 5 project in Québec and to continue its exploration efforts on other prospective zones. It will offer 5.55 million shares at C$0.45/share and 14.4 million flow-through shares at C$0.52/share through Scotia Capital, a subsidiary of the Bank of Nova Scotia (BNS.TO, NYSE:BNS). We like to see flow-through placements in this environment, as those funds will have to be spent on the ground.
Falco’s shares have recently come down from a high of C$0.78 upon the appointment of Sean Roosen as chairman, after Osisko Gold Royalties (OR.TO) acquired a large stake in Falco Resources. The company’s first resource estimate at Horne 5 was already interesting, but there’s a lot of room for improvement as the gold-equivalent grade was based on outdated recovery rates and didn’t even include the silver values. As such, we are extremely confident the next resource update will contain a substantially higher amount of gold-equivalent ounces.
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Disclosure: The author holds a long position in Falco Resources. Please see our disclaimer for current positions.
