Red Back Mining Inc

A Growing Gold Producer - Africa

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Message: Closes $165 Million Public Offering

Closes $165 Million Public Offering

posted on Feb 12, 2009 06:50AM
February 12, 2009
Red Back Closes $165 Million Public Offering
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 12, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

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.
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