NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
RED BACK FILES FINAL SHORT FORM PROSPECTUS
October
23, 2007 (RBI – TSX) – Red Back
Mining Inc. (the “Company” or “Red Back”) is pleased to
announce that it has filed a final short form prospectus (the
“Prospectus”) with the regulatory authorities in each of the
provinces of Canada in connection with the bought deal financing announced on
October 9, 2007 and October 10, 2007 and a preliminary short form prospectus filed
on October 15, 2007. The Prospectus qualifies the distribution of an
aggregate of 16,667,200 common shares in the capital of the Company (the
“Common Shares”) at an offering price of $6.60 per common share
(the “Offering”). Scotia Capital Inc. is acting as lead underwriter
in connection with the Offering together with a syndicate of underwriters that
included GMP Securities L.P. and Cormark Securities Inc.
Closing
of the Offering is expected to occur on or about October 31, 2007 and is
subject to final TSX approval.
Proceeds
from 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.
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