RED BACK FILES PRELIMINARY SHORT FORM PROSPECTUS
October 15, 2007...
(RBI – TSX) – Red Back Mining Inc. (the “Company” or
“Red Back”) is pleased to announce
that it has filed a preliminary short form
prospectus (the “Preliminary 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. The Preliminary Prospectus qualifies the distribution
of, in each of the provinces of Canada, 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”).
In
connection with the Offering, the Company has entered into an Underwriting
Agreement with Scotia Capital Inc., GMP Securities L.P. and Cormark Securities
Inc. (collectively, the “Underwriters”), pursuant to which the
Company has agreed to sell to the Underwriters, on a bought-deal basis, an
aggregate of 16,667,200 Common Shares at a price of $6.60 per Common Share for
gross proceeds of $110,003,520.
The
Offering is expected to close on or about October 31, 2007 and is subject to
regulatory and stock exchange approvals.
Proceeds
from the Offering will be used to eliminate all obligations outstanding under
Red Back’s current gold hedge book 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 contact:
Simon
Jackson, VP Corporate Development, at (604)
689-7842 or
Sophia
Shane, Investor Relations, at (604) 689-7842.