Farallon to Raise $25 Million Through Note Offering


    VANCOUVER, Sept. 3 /CNW/ - Dick Whittington, President and CEO of
Farallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN; OTCBB: FRLLF)
announces that the Company is raising $25 million through a private placement
of Units arranged by Paradigm Capital Inc. The proceeds are for working
    Each Unit consists of a $100,000 promissory note ("Note") plus 8,000
Farallon common shares (aggregate 2,000,000 shares). The Notes are six-month
promissory notes bearing interest at 15% pa and secured by mining equipment.
The maturity date can be extended for a further six months through an issuance
of another tranche of shares having the same aggregate value as the initial
tranche of shares but with reference to the prevailing market price of the
shares at the time of the extension. The Notes contain customary debt
covenants as well as early maturity requirements in the event of a change of
control of Farallon or a material asset disposal. The offering is subject to
acceptance of the TSX and is targeted to close on September 9, 2008.
    The Notes and shares included in the Units will be restricted from
trading in Canada for four months from completion of the offering and these
securities will not be registered under the United States Securities Act of
1933 and may not be offered or resold in the United States absent an exemption
from registration under that Act.
    As announced in an August 21, 2008 news release, the Company has been
working on short term working capital facilities to supplement our current and
anticipated cash flow requirements. Apart from the Notes associated with this
financing and a $3.8 million loan secured in May, the Company is debt free and
is projected to be fully funded through to production. The G-9 project is well
advanced and the Company is on track to meet its goal of mining 700,000 tonnes
of 13% zinc, 1.5% copper, 1.2% lead, 150 grams per tonne of silver and
2.2 grams per tonne of gold through to December 2009.
    Farallon has advanced the G-9 polymetallic (zinc, copper, silver, gold,
lead) project at its Campo Morado Property in Mexico through a 'Parallel
Track' program. Drilling has expanded and confirmed the high-grade
mineralization within the G-9 deposit in parallel with project development
activities. Underground decline access reached the North and West Extension
zones of the G-9 deposit by mid August and underground drilling, and stope
access and development is underway. Mill commissioning is well underway and
concentrate is being produced. Management anticipates commencing haulage and
sale of concentrates to begin in October. Access for stope development in the
high-grade Southeast zone is expected in December, and full production at
1,500 tonnes per day is being targeted for January 2009.


    J.R.H. (Dick) Whittington
    President & CEO

    No regulatory authority has approved or disapproved the information
    contained in this news release

                         Forward Looking Information

    This release includes certain statements that may be deemed
"forward-looking statements." All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, continuity of mineralization, exploration drilling, exploitation
activities and events or developments that the Company expects are
forward-looking statements. Although the Company believes that the
expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in the forward looking statements. The likelihood of future mining at
Campo Morado is subject to a large number of risks and may require achievement
of a number of technical, economic and legal objectives, including obtaining
lower than expected grades and quantities of mineralization and resources,
recovery rates and mining rates, changes in and the effect of government
policies with respect to mineral exploration and exploitation, the possibility
of adverse developments in the financial markets generally, delays in
exploration, development and construction projects, fluctuations in the prices
of zinc, gold, silver, copper, lead and other commodities, completion of
pre-feasibility and final feasibility studies, preparation of all necessary
engineering for underground and processing facilities as well as receipt of
additional financing to fund mine construction. Such funding may not be
available to the Company on acceptable terms or on any terms at all. There is
no known ore at Campo Morado and there is no assurance that the mineralization
at Campo Morado will ever be classified as ore. For more information on the
Company and the risk factors inherent in its business, investors should review
the Company's Annual Information Form at www.sedar.com and the Company's
annual report on Form 20-F at www.sec.gov.

For further information:

For further information: on Farallon Resources Ltd., please visit the
Company's website at www.farallonresources.com or contact Investor Services at
(604) 684-6365 or within North America at 1-800-667-2114

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Farallon Mining Ltd.

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