QualityStocks.net News – Largest Public Mining Company to Pay $80M for Stake in Farallon Resources Ltd.’s (FRLLF.OB) Silver Production

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We would like to highlight Farallon Resources Ltd. (OTCBB: FRLLF). Shares of the Company were up nearly 12 percent in afternoon trading, moving on word that the company has secured an agreement with a subsidiary of Silver Wheaton Corp., in which Silver Wheaton will purchase 75 percent of the silver produced from the Campo Morado polymetallic project in Guerrero State, Mexico, for $80 million.

“We are very pleased to have completed this transaction with Silver Wheaton, which will greatly assist us in our plans to complete the G-9 Project. Silver Wheaton is the largest public mining company with a 100 percent of its operating revenue from silver production and we are extremely pleased with the establishment of this new relationship,” stated Dick Whittington, president and CEO of Farallon.

Part of the funds from Silver Wheaton will be used as startup working capital for Farallon’s G-9 project. While the company has already commenced mine planning, design, equipment acquisition and site preparation activities, Farallon anticipates production of the G-9 project in July 2008. Exploration of the project will confirm the high-grade mineralization within the G-9 deposit.

In addition to the pre-arranged installments throughout the next few months, Silver Wheaton will pay Farallon a fixed price per ounce of silver equal to the lesser of $3.90 and the spot price at the time of sale.

“This is an exciting time for the Company and its shareholders. We are now fully funded to production at G-9, which coupled with recent exploration successes, positions the Company to deliver on both of its corporate objectives: to advance G-9 to production and to find another G-9,” concluded Whittington.

The company recently updates shareholders on the progress of its 2008 drilling program. Farallon plans on discovering another G-9-style deposit, and plans to increase and extend the resources around G-9. The company said it is on track to meet its objectives and has deployed three rigs for further advancement.

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