Business
Farallon to Raise $25 Million Through Note Offering
/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US WIRE SERVICES/ VANCOUVER, Sept. 3 /CNW/...
About this update from First Atlantic Nickel & Cobalt Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US WIRE SERVICES/\n\n\nVANCOUVER, Sept. 3 /CNW/ - Dick Whittington, President and CEO of\nFarallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN; OTCBB: FRLLF)\nannounces that the Company is raising $25 million through a private placement\nof Units arranged by Paradigm Capital Inc. The proceeds are for working\ncapital.\n\n\nEach Unit consists of a $100,000 promissory note ("Note") plus 8,000\nFarallon common shares (aggregate 2,000,000 shares). The Notes are six-month\npromissory notes bearing interest at 15% pa and secured by mining equipment.\nThe maturity date can be extended for a further six months through an issuance\nof another tranche of shares having the same aggregate value as the initial\ntranche of shares but with reference to the prevailing market price of the\nshares at the time of the extension. The Notes contain customary debt\ncovenants as well as early maturity requirements in the event of a change of\ncontrol of Farallon or a material asset disposal. The offering is subject to\nacceptance of the TSX and is targeted to close on September 9, 2008.\n\n\nThe Notes and shares included in the Units will be restricted from\ntrading in Canada for four months from completion of the offering and these\nsecurities will not be registered under the United States Securities Act of\n1933 and may not be offered or resold in the United States absent an exemption\nfrom registration under that Act.\n\n\nAs announced in an August 21, 2008 news release, the Company has been\nworking on short term working capital facilities to supplement our current and\nanticipated cash flow requirements. Apart from the Notes associated with this\nfinancing and a $3.8 million loan secured in May, the Company is debt free and\nis projected to be fully funded through to production. The G-9 project is well\nadvanced and the Company is on track to meet its goal of mining 700,000 tonnes\nof 13% zinc, 1.5% copper, 1.2% lead, 150 grams per tonne of silver and\n2.2 grams per tonne of gold through to December 2009.\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. Drilling has expanded and confirmed the high-grade\nmineralization within th...