Business
Farallon & Credit Suisse Agree to US$30 Million Term Loan Commitment
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ Proceeds ...
About this update from First Atlantic Nickel & Cobalt Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\nUNITED STATES/\n\n\nProceeds to pay off Notes issued in September 2008\n\n\nVANCOUVER, May 7 /CNW/ - Farallon Resources Ltd. ("Farallon" or the\n"Company") (TSX: FAN) announces that it has signed a binding term sheet (the\n"Agreement") with Credit Suisse - Zurich of Switzerland ("Credit Suisse"),\nwhereby Credit Suisse will lend the Company up to US$30 million in the form of\na four-year term loan. The proceeds will be used to refinance imported\nequipment related to the construction and commissioning of the 1,500 tpd mine\nand mill at G-9. The equipment was originally financed with Promissory Notes\n(the "Notes") which are due to mature on September 9, 2009. The Agreement has\nstandard terms and conditions for an agreement of this nature and will be\nsubject to due diligence and final legal documentation. Closing is expected to\noccur on or about June 1, 2009, at which time, Farallon will initiate early\nrepayment of the Notes.\n\n\nAs part of Farallon's ongoing objective to strengthen its balance sheet,\nthe Company has been actively pursuing a number of options to re-finance the\nNotes. This Agreement with Credit Suisse enables the Company to do so much\nearlier than anticipated and at significantly reduced borrowing cost. Closing\nof the facility with Credit Suisse and the repayment of the Notes will move\nthe Company's modest debt level from a short-term liability to a long-term\nliability, thereby improving its working capital position. With a strong asset\nbase and minimal long-term debt, Farallon will have achieved the objective of\nrestructuring its balance sheet and positioning itself for future growth.\n\n\nDick Whittington, President and CEO, said: "I am extremely pleased to be\nable to establish a banking relationship with Credit Suisse. They are a first\nranking bank with a strong presence in the mining industry. We look forward to\nfinalizing the facility and having Credit Suisse play a prominent role in our\ngrowth profile in the future. I am also very pleased to have reached this\nagreement at a time of continued turmoil in banking and equity circles,\nreinforcing our belief that we have a first class asset at G-9 and that this\nasset can be used as a platform for growth, even ...