FAN-t...in the news:
Farallon sells 2.5 million units to ECPLP
Tue 16 Apr 2002
News Release
Mr. Keith Presnell reports
Exploration Capital Partners Limited Partnership (ECPLP) has acquired
ownership of 2.5 million units of Farallon Resources at a price of 30 cents
per unit pursuant to private placement which completed on April 12, 2002.
Each unit consists of one common share and one share purchase warrant,
exercisable for a period of two years at a price of 40 cents per share.
ECPLP's general partner, Resource Capital Investment Corporation
(Resource), also of 200, 8375 West Flamingo Blvd., Las Vegas, Nev., 89117,
controls the voting of securities held by ECPLP. Resource is 90 per cent
owned and controlled by the Rule Family Trust and Arthur Richards Rule. A
finder's fee equal of 666,666 units was paid to Global Resource Investments
Ltd., of 7770 El Camino Real, Carlsbad, Calif., 92009. Global is owned and
controlled by Mr. Rule. As a result of the ownership of Resource and
Global, Resource, Global and ECPLP are deemed to be joint actors.
Upon completion of the private placement, ECPLP holds 2.5 million common
shares of Farallon (approximately 7.76 per cent of outstanding shares of
Farallon) and 2.5 million warrants. Upon exercise of its warrants, assuming
no other shares of Farallon are issued, the ECPLP would hold five million
common shares or approximately 14.4 per cent of the then-issued and
outstanding common shares of Farallon. Combined, ECPLP and Global hold
3,166,666 common shares of Farallon (approximately 9.8 per cent of the
outstanding shares of Farallon) and, upon exercise of the warrants held by
ECPLP and Global, assuming no other shares of Farallon are issued, Global
and ECPLP would hold 6,333,332 common shares of Farallon (approximately
17.9 per cent of the outstanding shares of Farallon).
The transaction involved a private placement of securities from the
treasury of Farallon. The securities were acquired for investment purposes.
While neither ECPLP or Global has a present intention of acquiring further
securities of Farallon, either may in the future acquire or dispose of
securities of Farallon, through the market or otherwise, as circumstances
or market conditions warrant. As a condition to the private placement,
ECPLP has agreed that any future acquisitions of common shares of Farallon
made by ECPLP will not result in it holding 10 per cent or more of the
outstanding common shares of Farallon, without first receiving the approval
of the Toronto Stock Exchange or the shareholders of Farallon for such
acquisition. |
