By Devika Patel
Knoxville, Tenn., Nov. 27 - Farallon Resources Ltd. said it will conduct a C$25 million private placement of shares.
The company will sell 28,572,000 common shares on a bought-deal basis at C$0.70 per share.
The deal is being conducted by a syndicate of underwriters led by Paradigm Capital Inc. and including Canaccord Capital Corp., MGI Securities Inc. and Raymond James Ltd. The underwriters have a 15% greenshoe and will receive a 6% cash commission and a number of compensation options equal to 6% of the total number of shares sold. Each compensation option will be exercisable at C$0.70 for one year.
Proceeds will be used for working capital and general corporate purposes.
Based in Vancouver, B.C., Farallon is a minerals exploration company.
| Issuer: | Farallon Resources Ltd.
|
| Issue: | Common shares
|
| Amount: | C$25 million
|
| Shares: | 28,572,000
|
| Greenshoe: | 15%
|
| Price: | C$0.70
|
| Warrants: | No
|
| Underwriters: | Paradigm Capital Inc. (lead), Canaccord Capital Corp., MGI Securities Inc., Raymond James Ltd.
|
| Fees: | 6% in cash and compensation options
|
| Pricing date: | Nov. 27
|
| Stock symbol: | Toronto: FAN
|
| Stock price: | C$0.74 at close Nov. 26
|
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