| | Mon Mar 9, 2009
Farallon Announces Extension Of $25 Million Notes Deregistering From The SEC Completed
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| | NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
March 9, 2009, Vancouver, BC - Dick Whittington, President and CEO of Farallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN) announces that the Company has extended by six months the maturity date for re-payment of the promissory notes (the "Notes") previously announced in the Company's September 3, 2008 and September 9, 2008 press releases. The new maturity date of the Notes will be September 9, 2009. The $25 million Notes were raised through a private placement of Units (the "Units") arranged by Paradigm Capital and Wellington West Capital Markets Inc.
Each Unit consisted of a $100,000 Note plus 8,000 Farallon common shares (aggregate 2,000,000 shares). The Notes were six-month promissory notes bearing interest at 15% pa and are secured by mining equipment. Under the terms of the Notes, the maturity date could be extended for a further six months through an issuance of another tranche of shares having the same aggregate value as the initial tranche of shares. At today's prevailing market price of Farallon's shares, this has resulted in the issue of an additional 5,304,480 shares to the noteholders.
On a separate matter, the voluntary termination of the registration of Farallon's common shares under section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act") previously announced in the Company's news release dated October 31, 2008 has been completed. As a result, Farallon is no longer subject to the reporting obligations under the Exchange Act, including the obligation to file annual reports on Form 40-F and reports on Form 6-K. The Company's shares are also no longer quoted in the United States on the Over-The-Counter Bulletin Board.
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 during the balance of 2008. The mine is currently in production and targeting reaching design capacity of 1500 tpd in March 2009. Vessel shipments of concentrates commenced in February 2009 and regular vessel shipments are now expected on a continuous basis throughout the year.
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 or within North America at 1-800-667-2114.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington
President & 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. |
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| | You can view the Next News Releases item: Mon Mar 16, 2009, Farallon Announces Favourable Ruling On Wiltz Case
You can view the Previous News Releases item: Thu Feb 26, 2009, Farallon Completes Initial Closing Of Financing
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