| | Mon Jun 8, 2009
Farallon Closes US$30 Million Term Loan With Credit Suisse Balance Sheet To Be Strengthened Accordingly
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| | NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
June 8, 2009 Vancouver, BC. Farallon Mining Ltd. ("Farallon" or the "Company") (TSX: FAN) announces that it has closed the US$30 million term loan (the "Agreement") with Credit Suisse - Zurich of Switzerland ("Credit Suisse"), announced on May 7, 2009. The term of the loan is four years and the Company has chosen to fix the interest rate over the four year period. Proceeds will now be used to refinance imported equipment related to the construction and commissioning of the 1,500 tpd mine and mill at G-9. The equipment was originally financed with Promissory Notes (the "Notes") which were due to mature on September 9, 2009.
Farallon has now fulfilled all of its obligations under the Notes and has initiated repayment to Note-holders totalling US$23.6 million. This effectively concludes the Company's recent strategy to restructure the balance sheet by increasing working capital and replacing current liabilities with long-term debt at significantly reduced interest costs.
Dick Whittington, President and CEO, said: "I am extremely pleased to have finalized this four-year term loan. We look forward to working with Credit Suisse as one of our strategic partners as we seek to grow as a mining company. Our ultimate goal is to create a low-cost, multi-mine, mid-tier mining company with significant exploration upside potential."
Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in Mexico reached commercial production in April 2009. The Company expects to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper for the remainder of 2009.
For further details on Farallon Mining 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, financial 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: Wed Jun 10, 2009, Farallon Announces Appointment Of Chief Operating Officer
You can view the Previous News Releases item: Mon May 25, 2009, Farallon Announces Corporate Name Change
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