Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

October 15, 2007 17:31 ET

Red Back Files Preliminary Short Form Prospectus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2007) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) 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,

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    VP Corporate Development
    (604) 689-7842
    or
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    (604) 689-7842
    (604) 689-4250 (FAX)
    Website: www.redbackmining.com