TORONTO (miningweekly.com) – Shares in Farallon Resources gained 9,7% on Thursday morning, after the company announced that Credit Suisse had agreed to lend it up to $30-million, in the form of a four-year term loan.

The funds will enable Farallon to refinance promissory notes due to mature in September, that the company used to pay for imported equipment needed for the construction and commissioning of the mill at its G-9 mine, in Mexico.

The agreement with Credit Suisse will be subject to due diligence and final legal documentation, and closing is expected to occur on or about June 1, 2009, at which time, Farallon will begin early repayment of the notes.

Vancouver-based Farallon said it has been actively pursuing a number of options to refinance the notes, but “this agreement with Credit Suisse enables the company to do so much earlier than anticipated and at significantly reduced borrowing cost”.

Farallon's G-9 zinc, copper, silver, gold and lead mine at its Campo Morado property in Mexico reached commercial production last month.

The company expects to produce at an annualised rate of 120-million pounds of zinc and 15-million pounds of copper for the remainder of 2009.

Shares in the firm rose C$0,03 apiece on Thursday morning, to C$0,34 by 10:51 in Toronto.

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