FND Finders Res.

 
TIDMFND 
 
For Release: 16th January 2009 
 
                      FINDERS RESOURCES LIMITED 
 
       CONVERTIBLE NOTE FACILITY TO RAISE UP TO US$1.5 MILLION 
 
Finders Resources  Limited  (ASX and  AIM:  FND) (the  "Company")  is 
pleased to  announce that  it  has entered  into a  Convertible  Note 
Facility Agreement ("Facility")  with Resource Capital  Fund IV  L.P. 
("RCF").  Under the Facility, RCF  has agreed to provide the  company 
with US$1.5 million, of which  US$1.0 million will be made  available 
on satisfaction  of certain  standard conditions  precedent with  the 
balance  to  be  made   available,  subject  to  further   conditions 
precedent, on or before 15 March 2009. 
 
The terms of the convertible note are as follows - 
 
 
(a) Maturity date:     Three years from drawdown 
(b) Conversion rate:   Convertible  to  Finders  shares  at   A$0.40, 
                       subject to usual anti-dilution provisions 
(c) Coupon rate:       12% per annum 
(d) Establishment fee: 112,500 Finders ordinary shares 
(e) Security:          2nd ranking floating charge 
 
 
The proceeds  from the  Facility  will be  used for  working  capital 
purposes. 
 
Executive Chairman, Russell Fountain, said 
"RCF is  a  significant investor  in  Finders and  we  welcome  their 
continuing support  through  this  Facility.   The  funds  from  this 
Facility will place the company in  a better financial footing as  we 
move through  the  commissioning  phase of  the  Wetar  Demonstration 
Plant. We now have over 15,000 tonnes of ore under irrigation in  the 
test heap;  the heap  is percolating  well, with  initial take-up  of 
copper into  solution  in  line with  our  expectations,  and  copper 
cathode production expected to commence  by the end of January.   The 
Company continues to assess several proposals to acquire second  hand 
plant for the  full scale  development of the  Wetar copper  project, 
which could significantly enhance the project's economics." 
 
The  Company  has  also  entered  into  loan  agreements  with   four 
directors,  Messrs  Russell  Fountain,  Christopher  Farmer,   Robert 
Thomson and Stephen de  Belle lending a total  of AUD$714,000 to  the 
Company. Subject to shareholders' approval, these unsecured loans may 
be converted by the Company into Finders shares as follows: 
 
i)        AUD$134,000 is  interest free, may  be converted at  A$0.50 
per share, unless the relevant director has earlier elected to  apply 
the loan amount to the exercise of existing options; 
ii)      AUD$580,000 at an interest rate of 10% per annum, which  may 
be  converted  to  shares  at  Market  Price  at  the  time  of   the 
shareholders approval; 
iii)    "Market Price" being the volume weighted average share  price 
over the five trading days prior to such approval; and 
iv)    These Directors' loans are not otherwise repayable until after 
the existing loan from Meridian has been repaid and the Company is in 
compliance with any  obligations in relation  to the RCF  convertible 
notes. 
 
Stephen Lonergan, the only  director of the  Company not involved  in 
the above loan  arrangements, considers that  after having  consulted 
with RFC Corporate  Finance Ltd, the  Company's nominated advisor  in 
relation to the AIM  market, that the terms  of the loan  transaction 
and  share  conversion  are  fair  and  reasonable  insofar  as   its 
shareholders are  concerned and  are at  least as  favourable to  the 
Company as arms length terms. 
 
The Company also advises that an updated presentation is available on 
its  website.  The  presentation  includes  an  overview  of  current 
activities at the Wetar Project and recent images of the Wetar Copper 
demonstration plant. 
Attention is also drawn to a new research report on Finders by  Green 
Leader Equities  Research  which  is now  available  on  the  company 
website. 
 
Finder's webpage is www.findersresources.com 
 
For further information please contact 
 
 
Finders Resources Ltd: 
Russell         Executive Chairman          +61 2 9211 8299 
Fountain 
Chris Farmer    Managing Director           info@findersresources.com 
 
Financial PR: 
Doug Macdonald  Capital      Group      (in +61 424 255 959 
                Australia) 
Nick Elwes      College Hill (in the UK)    +44 20 7457 2020 
 
RFC Corporate Finance Ltd - Nomad: 
Rob Adamson     Managing Director           +61 2 9250 0000 
Stuart Laing    Executive Director          +61 8 9480 2500 
 
FinnCap -  Finders' Broker for the AIM market: 
Mathew Robinson Corporate Finance Director  +44 20 7600 1658 
Joe Lunn        Analyst                     +44 20 7600 1658 
 
 
Background on Finders Resources 
 
Finders, listed on AIM and ASX,  is the operator of the Wetar  Copper 
(92% and  earning),  and  Ojolali  Gold-Silver  Projects  (72%  with 
option) in Indonesia, and holds an investment in Geopacific Resources 
NL, an ASX-listed company with  active exploration programs for  gold 
and copper in Fiji. 
 
At the Wetar Project,  as part of a  definitive feasibility study,  a 
demonstration SX-EW plant with 5t per day copper cathode capacity  is 
being installed and is permitted to process 100,000t of ore from  the 
Kali Kuning deposit.  The Company is targeting commercial  production 
of 20-25,000  tonnes  per year  cathode  by early  2010,  subject  to 
accelerated  schedules  for  engineering  design  work  and   project 
funding. 
 
At the Ojolali Project,  Finders controls what it  considers to be  a 
major new  epithermal  gold district,  and  has been  undertaking  an 
extensive  exploration  program   comprising  detailed  drilling   to 
establish and initial mining resource, supported by extensive surface 
geophysical and  geochemical  surveys.  Finders'  believes  that  the 
Ojolali project has strong potential to generate short-term cash flow 
through open  pit CIL/CIP  development of  the gold  resource at  the 
Jambi Oxide gold deposit. 
 
For further information  on results  previously reported  and a  full 
resource statement please visit our website www.findersresources.com. 
 
 
Disclaimer 
This announcement  may or  may not  contain certain  "forward-looking 
statements". All  statements,  other than  statements  of  historical 
fact, which address activities,  events or developments that  Finders 
believes, expects or anticipates will or may occur in the future, are 
forward-looking statements. Forward-looking statements are often, but 
not  always,  identified  by  the  use  of  words  such  as   "seek", 
"anticipate", "believe", "plan",  "estimate", "targeting",  "expect", 
and "intend" and statements  that an event  or result "may",  "will", 
"can", "should", "could", or "might"  occur or be achieved and  other 
similar expressions.  These  forward-looking statements  reflect  the 
current internal  projections,  expectations or  beliefs  of  Finders 
based on information  currently available to  Finders. Statements  in 
this document that are forward-looking and involve numerous risks and 
uncertainties that could  cause actual results  to differ  materially 
from expected results are based on the Company's current beliefs  and 
assumptions  regarding  a  large  number  of  factors  affecting  its 
business. Actual results may differ materially from expected results. 
There can be no assurance that (i) the Company has correctly measured 
or identified all of the factors affecting its business or the extent 
of their likely impact, (ii) the publicly available information  with 
respect to these factors on which the Company's analysis is based  is 
complete or accurate, (iii) the Company's analysis is correct or (iv) 
the Company's strategy, which is based in part on this analysis, will 
be successful. Finders expressly  disclaims any obligation to  update 
or revise any such forward-looking statements. 
 
=--END OF MESSAGE--- 
 
 
 
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

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