Business
Farallon announces financing update
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ ADDITIONA...
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 ADDITIONAL PRIVATE PLACEMENT SECURED\nPROCEEDS TO BE UTILIZED TO PAY OFF NOTES ISSUED IN OCTOBER 2008\n\n\nVANCOUVER, April 6 /CNW/ - Farallon Resources Ltd. ("Farallon" or the\n"Company") (TSX: FAN) announces that the Company has completed the closing of\na private placement financing for gross proceeds of $8.3 million through the\nissuance of 41.7 million shares at a price of $0.20 per share.\n\n\nThe proceeds will be used to pay off the $7.75 million in promissory\nnotes issued in October 2008 (see press release dated October 17, 2008). By\npaying off the notes, the Company will reduce its short-term liabilities. In\nconjunction with the repayment, a bonus fee of $581,250 and an aggregate of\n620,000 bonus shares will be issued to the note holders.\n\n\nThe Company also announces the final closing of the brokered offering\narranged by a syndicate led by Paradigm Capital Inc and including Wellington\nWest Capital Markets Inc. (the "Agents"), which raised $5 million through the\nissuance of 25 million shares at the price of $0.20 per share (see press\nrelease dated February 26, 2009).\n\n\nDick Whittington said "Together with the proceeds from the private\nplacement that was partially closed in February, the Company has raised a\ntotal of $13.3 million. This is a great achievement given the current market\nsituation. Both financings were completed at current market prices and no\nwarrant was included. The funds received will allow us to reduce the Company's\nshort-term debt, improve our working capital position and strengthen our\nbalance sheet. Coupled with the recent extension of the remaining $25 million\npromissory notes, the Company's short-term outlook has strengthened\nconsiderably."\n\n\nThe securities issued under the offering will be subject to a four month\nhold period under Canadian securities legislation and these securities will\nnot be registered under the United States Securities Act of 1933 and may not\nbe offered or resold in the United States absent an exemption from\nregistration under that Act.\n\n\nFarallon has advanced the G-9 polymetallic (zinc, copper, silver, gold,\nlead) project at its Campo Morado Property in Mexico through a 'Parallel\nTrack' program in 2007 an...