RED BACK ANNOUNCES
$40,005,000 BOUGHT DEAL
November 21,
2008 (RBI ? TSX) ? Red Back Mining Inc. (the ?Company? or ?Red Back?) is
pleased to announce that it has entered into an agreement with a syndicate of
underwriters under which the underwriters have agreed to buy 11,430,000 common
shares (the ?Common Shares?) from Red Back for sale to the public at a price of
C$3.50 per share, representing an aggregate issue of $40,005,000 (the
?Offering?). The offering will be lead by Scotia Capital Inc. and BMO
Capital Markets. The Offering is expected to close on or about December
11, 2008 and is subject to regulatory and stock exchange approvals.
Proceeds from
the Offering will be used to fund capital expansion projects currently underway at Tasiast and
Chirano, and for general corporate purposes.
The Common
Shares have not been and will not be registered under the United States
Securities Act of 1933, as amended, or under any state securities laws, and may
not be offered, sold, directly or indirectly, or delivered within the United
States of America and its territories and possessions or to, or for the account
or benefit of, United States persons except in certain transactions exempt from
the registration requirements of such Act. This release does not constitute an
offer to sell or a solicitation to buy such securities in the United
States.
FORWARD-LOOKING INFORMATION
This press release contains ?forward-looking
information? that is based on Red Back?s
current expectations, estimates, forecasts and projections. This
forward-looking information includes, among other things, statements with
respect to Red Back?s plans,
outlook and business strategy. The words ?may?, ?would", ?could?,
?should?, ?will?, ?likely?, ?expect", ?anticipate?, ?intend?, ?estimate?,
?plan?, ?forecast?, ?project?, and ?believe? or other
similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause Red Back?s
actual results, level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
information. Such factors include, but are not limited to:
uncertainties related to drilling results; the ability to raise sufficient
capital to fund exploration; changes in economic conditions or financial
markets; changes in prices for Red Back?s mineral
products or increases in input costs; litigation, legislative, environmental
and other judicial, regulatory, political and competitive developments; technological
or operational difficulties or inability to obtain permits encountered in
connection with exploration activities; and labour relations matters.
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be considered
carefully and readers should not place undue reliance on such forward-looking
information. Red Back disclaims any intention or obligation to update or
revise forward-looking information, whether as a result of new information,
future events or otherwise.
ON BEHALF OF THE BOARD:
(signed) ?Richard P. Clark,? President
For
further information, please call (604) 689-7842