Red Back Mining Inc.

Red Back Mining Inc.

July 16, 2009 14:13 ET

Red Back Comment on Randgold Proposal for Moto

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2009) - Red Back Mining Inc. (the "Company" or "Red Back) (TSX:RBI) announced that it has been notified by Moto Goldmines Limited ("Moto") that Moto has received an acquisition proposal from Randgold Resources Limited ("Randgold") pursuant to which Randgold would acquire all of the issued and outstanding shares of Moto. Moto has advised Red Back that its Board of Directors has not yet met to consider the proposal from Randgold and, therefore, no determination has been made by Moto as to whether the proposal could reasonably be expected to be a "Superior Proposal" within the meaning of the Arrangement Agreement dated June 1, 2009 made between Moto and Red Back. Red Back has right to match any "Superior Proposal" for a period of 5 business days following such determination by the board of directors of Moto. Red Back will advise its shareholders of further developments.

About Red Back

Red Back Mining Inc. 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 well advanced with commissioning underway. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are continuing.

This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

On behalf of the Board of Directors:

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    VP-Corporate Development
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations