| | Fri Feb 13, 2009
Farallon Announces Private Placement Financing to Raise $10 Million
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| | February 13, 2009, Vancouver, BC - Dick Whittington, President and CEO of Farallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN) announces that the Company plans to raise up to $10 million through a private placement.
The Company plans to issue up to 50 million common shares at the price of $0.20 per share through a brokered offering to be arranged on a best efforts basis by a syndicate led by Paradigm Capital Inc and including Wellington West Capital Markets Inc. (the "Agents"). A commission equal to 6% of the proceeds from the offering is payable to the Agents. In addition, the Agents will be entitled to receive compensation options exercisable for that number of common shares equal to 6% of the number of shares issued under the offering for a period of 24 months at a price of $0.20 per share.
The securities issued under the offering will be subject to a four month hold period under Canadian securities legislation and these securities will not be registered under the United States Securities Act of 1933 and may not be offered or resold in the United States absent an exemption from registration under that Act.
The proceeds from the offering will be used for general working capital purposes. Closing of the offering is targeted to be completed on or about March 5, 2009 and is subject to stock exchange approval.
Farallon has advanced the G-9 polymetallic (zinc, copper, silver, gold, lead) project at its Campo Morado Property in Mexico through a 'Parallel Track' program. Surface facilities were largely completed in mid 2008, followed by mill commissioning and underground stope development. The mine is currently in production and targeting reaching design capacity of 1500 tpd in February 2009.
For further details on Farallon Resources Ltd., please visit the Company's website at www.farallonresources.com or contact Investor Services at 604-638-2160.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington
President and CEO
No regulatory authority has approved or disapproved the information contained in this news release.
Forward Looking Information
This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, continuity of mineralization, exploration drilling, operational activities, production rates, costs to completion and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements and may require achievement of a number of operational, technical, economic and legal objectives. The likelihood of continued future mining at Campo Morado is subject to a large number of risks, including obtaining lower than expected grades and quantities of mineralization and resources, lower than expected mill recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of local disputes including blockades of the company's property, the possibility of adverse developments in the financial markets generally, fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining additional mining and construction permits, preparation of all necessary engineering for ongoing underground and processing facilities as well as receipt of additional financing to fund mine construction, development and operation, if needed. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com and the Company's annual report on Form 40-F at www.sec.gov. |
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| | You can view the Next News Releases item: Mon Feb 23, 2009, Farallon Commences Shipping Concentrates To Asian Smelters
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