Farallon Raises $7.75 Million Through Notes

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[{"type":"text","content":"\n\n\n\nVANCOUVER, Oct. 17 /CNW/ - Dick Whittington, President and CEO of\nFarallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN; OTCBB:\nFRLLF), announces that the Company has raised $7.75 million through a private\nplacement of unsecured convertible promissory notes (the "Notes").\n\n\nEach $500,000 principal amount Note entitles the holder to receive a\nbonus of 40,000 common shares of the Company (aggregate of 620,000 shares) and\na cash payment of $37,500 for each six months that the Notes are outstanding.\nThe Notes mature six months from the Closing Date but the Corporation has the\nright to a one time extension for six months for equivalent cash and share\nbonuses. The $7.75 million principal amount of the Notes is convertible at\nmaturity into common shares of the Company at a fixed price of $0.33 per\nshare.\n\n\nThe Notes were issued on a private placement basis to qualified\npurchasers outside of Canada. A 6% referral fee was paid on the placement. The\nNotes and all shares will be subject to a hold period in Canada of four months\nand one day. The Notes will not be registered under the US Securities Act of\n1933 and may not be resold in the US or to a US person absent an exemption\nfrom registration.\n\n\nThe proceeds will be used for working capital and to repay an existing\nloan of $3.8 million announced by the Company on May 13, 2008.\n\n\nCommenting on the placement, Mr. Whittington stated: "I am very pleased\nthat the Company was able to complete this financing at a time of such\nuncertainty in world financial markets. These funds are a welcome addition to\nthe treasury and, while not needed to fund our current work plan, provide the\nCompany with added insurance during the production ramp up phase of building\nthe G-9 mine. As the Company is also evaluating the potential to expand\nproduction to 2,200 tonnes per day (up from the current plan of 1,500 tonnes\nper day) and these funds will enable us to carry out the necessary work to\nconduct these studies earlier than anticipated."\n\n\nON BEHALF OF THE BOARD OF DIRECTORS\n\n/s/ J.R.H. (Dick) Whittington\n\nJ.R.H. (Dick) Whittington\nPresident and CEO\n\nNo regulatory authority has approved or disapproved the information\ncontained in this news release.\n\n\nForward Looking Information\n\n\nThis release includes...

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