Farallon Announces First Quarter Fiscal 2009 Results

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[{"type":"text","content":"\n\n\n\nVANCOUVER, Nov. 17 /CNW/ - Farallon Resources Limited (TSX: FAN; OTCBB:\nFRLLF) ("Farallon" or the "Company") reports its results for the three months\nended September 30, 2008. This release should be read with the Company's\nFinancial Statements and Management Discussion & Analysis, available at\nwww.farallonresources.com and filed on www.sedar.com. Currency values are in\nUnited States dollars unless otherwise indicated.\n\n\nThe Company began commissioning activity at its G-9 polymetallic (zinc,\ncopper, lead, silver, gold) operation on the Campo Morado Property in Guerrero\nState, Mexico during the first quarter of fiscal 2009 (see News Release dated\nNovember 10, 2008). Commissioning activities will continue during November and\nDecember with ramp-up to design production of 45,000 tonnes processed per\nmonth by January 2009.\n\n\nCash and equivalents at the end of September 30, 2008 were $16.9 million.\nSubsequent to the end of the period, on October 17th, the Company announced\nthe closing of further working capital financing via convertible promissory\nnotes for a net amount of $6.9 million.\n\n\nIn addition to the above, the Company has rights under its mineral\noff-take agreement to request Advance Payments in the amount of 90% of the\nestimated value of zinc, copper and lead concentrates delivered to the port of\nManzanillo. The Advance Payments are currently being requested for\nconcentrates produced during the commissioning activity and carry an interest\nrate of LIBOR(1) + 1.5%. The Advance Payments can be received as cash within\n1-2 weeks of the concentrate being produced at site.\n\n\nThe Company continues to monitor the recent volatility in metal prices.\nDuring the period and subsequent to the period, there was a substantial\ndecline in the pricing for the Company's products with zinc declining 42% and\nCopper declining 60%. However, there was also a 26% increase in the value of\nthe US Dollar versus the Mexican Peso in the same period. As the Company\nreceives all of its revenue in US Dollars and predominantly has expenditures\nin Mexican Pesos, the exchange rate change partly offsets the decline in metal\npricing.\n\n\nPresident and CEO Dick Whittington said: "The recent rapid decline in\nmetal prices has had a significant impact on our forecasts for cash generation\ndurin...

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