Farallon Mining Ltd.
OTC Bulletin Board : FRLLF

Farallon Mining Ltd.

September 21, 2009 17:10 ET

Farallon Mining Ltd.: New Issue

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2009) -


Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN)(OTCBB:FRLLF) has today entered into an agreement with a syndicate of underwriters led by Paradigm Capital Inc. and Raymond James Ltd., and including Wellington West Capital Markets Inc., under which the underwriters have agreed to buy from Farallon 24,096,500 common shares at an issue price of $0.415 per common share (the "Offering") for gross proceeds of approximately $10 million.

The underwriters will have an over-allotment option, exercisable at any time prior to 30 days after the closing date, to acquire up to an additional number of common shares equal to 15% of the number of common shares sold pursuant to the Offering, at the issue price. The Company expects to file a short form prospectus with the securities regulatory authorities to qualify the common shares for distribution.

The net proceeds from the Offering are intended to be used for the advancement of programs aimed at mill expansion to 2,000 tonnes per day by July 1, 2010 and the restarting of exploration drilling on site, as well as for general working capital and corporate purposes. Closing of the Offering is expected to occur on or about October 14, 2009 and is subject to certain customary terms and conditions, including normal regulatory approvals, including the approval of the Toronto Stock Exchange.

The Offering is being made in all provinces of Canada, except Quebec. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Contact Information