Farallon closes part of C$10 million deal; Deltex wraps £1 million PIPE; Yukon raises $1.54 million

By Stephanie N. Rotondo

Portland, Ore., Feb. 27 - Farallon Resources Ltd. gave new details to Prospect News on Friday regarding the company's C$10 million private placement of stock.

A company spokesperson said that C$5 million has already closed. Negotiations are underway for the remaining portion of the deal. The spokesperson noted that the deal should be finalized on or about the original closing date of March 5.

Meanwhile, Deltex Medical Group plc announced that it completed a £1 million loan notes placement. The company said that the financing would strengthen its balance sheet.

Yukon-Nevada Gold Corp. also closed a deal, according to a press release. Funds from the two-tranche deal totaling $1.54 million will be used for operations at one of the company's mines.

Farallon closes part of sale

Farallon Resources gave Prospect News an update on its C$10 million private placement of stock.

Neil MacRae, investor relations manager for Farallon, said that the company closed on an initial C$5 million of the placement on Thursday. He added that the company is in "active discussions with other parties" regarding the remaining C$5 million.

Farallon announced the deal on Feb. 13. Under the terms of the deal, the company will issue 50 million common shares at C$0.20 per share. No warrants are included.

"We felt at this point in time it was the best deal available to the company," MacRae said of the decision to enter the PIPE market. He also added that the pricing was good, given that it is at a slight premium over where the company's stock is trading. The stock (TSX: FAN) closed steady at 18 cents on Friday.

"It was a pretty well-negotiated deal," he remarked. Investors involved in the deal are also "very positive" on the company's stock, he noted.

Proceeds from the deal will be used for general working purposes. Specifically, MacRae said that the funds would be used to further production at the company's G-9 polymetallic mine in Campo Morado, Mexico.

"Once we have this in full production, it should be a low-cost producer of zinc," he said. The mine also produces silver, gold, copper and lead.

"[The funds from the deal] are just giving us a little more buffer," MacRae continued. "But we should see positive cash flow in 2009."

Furthermore, MacRae said that the remaining tranche of the deal should be forthcoming. The deal was originally supposed to be completed on March 5.

"It should be on or about that date," he said. "But you never want to give a precise date."

Farallon is a Vancouver, B.C.-based minerals exploration company.

Deltex wraps £1 million placement

Deltex Medical Group completed a £1 million loan notes placement, the company announced Friday.

The loan notes due Feb. 27, 2014 were sold to Noble AIM VCT plc, according to a press release.

The debt bears interest at 8.5% for the first two years and at 5.5% above Libor thereafter. The notes are convertible into 8 million ordinary shares at 12.5p, which is a 26.6% premium over the company's closing share price as of Feb. 26. Deltex can also force conversion if the stock price is equal to or exceeds 37.5p for a period of 90 consecutive days.

The company said it raised the funds to "strengthen its balance sheet during current difficult economic times and to allow it to move ahead more quickly on certain initiatives."

"As we reported in our statement on 22 January 2009, we have implemented a plan to accelerate breaking even within our existing cash resources and, four months into it, we remain ahead of this plan," Nigel Keen, Deltex Medical's chairman, said in the statement. "Not withstanding this plan, the board considers that it would be in the best interests of shareholders to strengthen the balance sheet to deal with unforeseen events.

"This new capital also gives us the opportunity to pursue specific projects aimed at expanding our business where we judge that returns will be maximized by early investment rather than deferring investment until affordable out of operating cash flows."

The company's stock (London: DEMG) closed unchanged at $9.88.

Deltex Medical is a leader in oesophageal Doppler monitoring based in the United Kingdom.

Yukon-Nevada raises $1.54 million

Yukon-Nevada Gold closed two non-brokered private placements, according to a press release.

The two-tranche deal totaled $1.54 million. About 17.3 million units, consisting of one common share and one warrant, were sold at 6 cents in the first part of the deal. The warrants are exercisable at 8 cents within 24 months.

The second tranche included 10 million units sold at 5 cents per unit. Each unit consists of one common share, a series A warrant and a series B warrant. The series A warrant is exercisable at 7 cents within 12 months, while the series B warrant is exercisable at 9 cents within 18 months.

Proceeds from the transaction will be used to "finance the operations at the Jerritt Canyon property during the mill pre-start up phase, as well as partially fund the necessary capital improvements required to the mill facility," the release said.

Yukon's stock (TSX: YNG) was stable at 6.5 cents.

Yukon-Nevada is a Vancouver, B.C.-based gold mining and exploration company.

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