Good morning!
Please find enclosed a news release issued this morning. If you have any questions or require further information, please do not hesitate to call.
Best regards,
Sophia Shane
Ph. 604-689-7842
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
RED BACK CLOSES $60 MILLION PUBLIC OFFERING
December 11, 2008 (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 17,150,000 common shares at a price of CDN$3.50 per common share for gross proceeds of CDN$60,025,000 (the ?Offering?). The Company filed a final short form prospectus in each of the provinces of Canada in connection with the Offering on December 5, 2008. Scotia Capital Inc. and BMO Nesbitt Burns Inc. acted as co-lead underwriters in connection with the Offering together with a syndicate of underwriters that included GMP Securities L.P. and Cormark Securities Inc.
The net proceeds of 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 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 Mining Inc. 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. An aggressive exploration program aimed at increasing the Company?s resource and reserve base at both Chirano and Tasiast is 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, VP-Corporate Development
or Sophia Shane, Investor Relations at 604-689-7842