NOT FOR DISSEMINATION IN
THE UNITED STATES OR THROUGH U.S.
NEWSWIRES
RED BACK CLOSES
$110 MILLION PUBLIC OFFERING
October 31, 2007 (RBI – TSX)
– Red Back Mining Inc. (the “Company” or “Red Back”) is pleased to
announce
that it has closed the previously
announced public offering of 16,667,200 common shares at a price of CDN$6.60
per common share for gross proceeds of CDN$110,003,520 (the
“Offering”). The Company filed a final short form prospectus
in each of the provinces of Canada
in connection with the Offering on October 23, 2007. Scotia Capital Inc. acted
as lead underwriter in connection with the Offering together with a syndicate
of underwriters that included GMP Securities L.P. and Cormark Securities Inc.
After deducting underwriters’
fees, the net proceeds of the Offering will be used to eliminate all
obligations outstanding under Red Back’s current gold hedge book, to
repay its credit facility 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 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.
Red Back Mining Inc. is an African focused gold
producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania.
At Chirano, the Company is expanding its current operations through development
of newly discovered high grade underground resources. At Tasiast, gold
production has commenced with commercial production anticipated by the first
quarter of 2008. In addition, Red Back is continuing an aggressive exploration
program to increase its resource and reserve base at both projects.
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 Sophia Shane at (604) 689-7842