I contacted FCO and asked them to explain their situation. The following is their update abt the project. If you believe in the Idaho Cobalt project like me, it's time to get in because it may be your last chance to buy it so cheap.

"Some of the proceeds from our current Private Placement will be used to
commence Stage 2 construction but more funds will be required which will
come from commercial debt and offtake described below.

We did have strong interest in our original high yield note financing but
changing market conditions and high demands by potential participants were,
at some point, perceived by Formation not conducive to concluding business
that would end up being in the best interest of the shareholders. The
ultimate cost on the bottom line of the Project was not acceptable. We then
switched to an equity only financing – but the equity side was uncomfortable
fully participating until they could see what the terms of the debt side
would look like – so we pulled the prospectus offering altogether.

In November, bank interest was non-existent however today that is another
story. There is huge interest on the commercial debt side for financing the
ICP and we are currently negotiating with numerous international banks.
While these negotiations are proceeding, we decided to move forward with a
small private placement. This will allow us time to negotiate bank debt
(and very involved and lengthy process) as well as likely off-take
agreements with many end users and a multitude of trading companies for our
future production of copper, cobalt and or gold (this is often a requirement
of bank debt) . Our private placement is moving forward and much interest
is being shown. We are also receiving huge support from current
shareholders – as well as Jennings Capital (who were leading our last
financing efforts) and many of their clients are supporting this deal.

Our project is solid, we continue to move it forward and look forward to
anticipated production in 2011."

Sentiment : Strong Buy