Silver Falcon Mining, Inc. (OTCBB:SFMI) announced a private placement of secured convertible promissory note with warrants for gross proceeds of $300,000 on June 4, 2012. The company received gross proceeds of $300,000, which was net of original issue discount of $15,000 on the same date. The note bears a one-time interest charge of 5% and will mature on December 4, 2013. The note is convertible into shares of class A common shares. The conversion price is equal to 80% of the average of the three lowest daily average trading prices of the common stock during the 15 trading days preceding any conversion. The company also issued warrants to purchase 10,000,000 shares of common shares for $0.03 per share until June 4, 2016. The investor has a right to invest up to $1,000,000 more in multiple transactions on the same or better terms for a three year period following the date of this transaction. On June 11, 2012, a consortium of institutional investors along with Allen Simon has invested in the transaction for additional amount. On July 12, 2012, Silver Falcon Mining, Inc. closed the transaction. The company raised additional $500,000 in funding. The company issued $525,000 in principal amount of notes at an original issue discount of $25,000, representing 5% of the principal amount. The notes mature on January 12, 2014. The investor also received a warrant to purchase 16,666,667 shares of common stock for $0.03 per share at any time until July 12, 2016.