Red Back Mining Inc. Announces $150 Million
Bought Deal Financing
VANCOUVER,
BRITISH COLUMBIA--(Jan. 23, 2009)
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
Red Back Mining Inc. (TSX:RBI) announced today that that it has entered into an
agreement to sell an aggregate of 20,000,000 Common Shares in the capital of
the Company at a price of $7.50 per Common Share for aggregate gross proceeds
to the Company of $150,000,000 on a bought deal basis. The underwriting
syndicate is co-led by Cormark Securities Inc., BMO Capital Markets, GMP
Securities LP and including and Scotia Capital Inc.
The Company will grant the Underwriters an option (the "Over-Allotment
Option") to purchase up to an additional 2,000,000 Common Shares (the
"Option Shares") at a price of C$7.50 per Common Share to cover
over-allotments, if any, and for market stabilization purposes. The
Over-Allotment Option shall be exercisable by the Underwriters, in whole or in
part, any time up to 30 days following the closing of the Offering.
The Company shall use the net proceeds from the sale of the Common Shares for
working capital and general corporate purposes.
The Common Shares to be issued under this offering will be offered by way of a
short form prospectus in all provinces in Canada and in the United States on a
private placement basis pursuant to an exemption from the registration
requirements of the United States Securities Act of 1933, as amended, and such
other jurisdictions as may be agreed upon by the Company and the underwriting
syndicate.
The offering is scheduled to close on or about February 12, 2009 and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock Exchange and
the securities regulatory authorities.
The common shares will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the United
States absent registration or applicable exemption from the registration
requirements.
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:
Red Back Mining
Inc.
Simon Jackson
VP-Corporate
Development
(604) 689-7842
or
Red Back Mining
Inc.
Sophia Shane
Investor Relations
(604) 689-7842