Red Back Mining Inc.

Red Back Mining Inc.

August 05, 2009 08:30 ET

Red Back Mining Inc.: Moto Transaction Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2009) - Red Back Mining Inc. (TSX:RBI) (the "Company" or "Red Back") announces that it has not exercised its right to match the acquisition proposal from Randgold Resources Limited ("Randgold") to acquire Moto Goldmines Limited ("Moto").

Upon termination of the Arrangement Agreement between Red Back and Moto, Moto is obligated to pay a C$15.25 million termination fee to Red Back.

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 substantially complete. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are ongoing.

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