NOT FOR DISSEMINATION
IN THE UNITED STATES OR THROUGH U.S.
NEWSWIRES
RED
BACK CLOSES $165 MILLION PUBLIC OFFERING
February
12, 2009 ? Red Back Mining Inc. (the ?Company? or ?Red Back?) (TSX: RBI) is
pleased to announce that it has closed the previously announced bought deal
public offering of 20,000,000 common shares (the ?Shares?) of the Company at a
price of CDN$7.50 per Share (the ?Offering?). The underwriters, co-led by
Cormark Securities Inc., BMO Capital Markets, GMP Securities LP and Scotia
Capital Inc., exercised their over-allotment option in full, resulting in a
total of 22,000,000 Shares being issued at closing for gross proceeds of
CDN$165,000,000.
The
net proceeds of the Offering will be used by the Company to repay in full its
existing US$28 million bank credit facility and for working capital and general
corporate purposes.
The
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.
About
Red Back
Red
Back is an unhedged African focused gold producer. It owns and operates the
Chirano Gold Mine in Ghana
(90% interest) and the Tasiast Gold Mine in Mauritania
(100% owned). Major plant expansions at both Chirano and Tasiast are advanced.
Aggressive exploration programs aimed at increasing the Company?s resource and
reserve base at both Chirano and Tasiast are continuing.
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 of Directors,
Richard
P. Clark, President
For
further information, please contact Simon Jackson,
Vice President, Corporate Development
or
Sophia Shane, Investor Relations at
604-689-7842