On May 10, 2007, Red Back Mining Inc. closed a private placement of 69,444,000 units at a price of $5.40 per unit, raising gross proceeds of approximately $375 million. Each unit consisted of 0.2 special warrants and 0.8 subscription receipts. Each whole special warrant entitles holders to receive, without payment of any further consideration, one common share at any time prior to the date that is the earlier of: (i) the third business day following the date a final receipt has been issued by the securities regulatory authorities in Canada for a short-form prospectus qualifying the common shares; and (ii) four months and a day following the closing of the offering. Each subscription receipt entitles the holder to receive, without payment of additional consideration, one common share immediately following the acquisition by Red Back of the Tasiast Gold Project and the satisfaction of certain other conditions.
The offering was completed on a private placement best efforts agency basis by a syndicate of agents co-led by GMP Securities LP and Cormark Securities Inc. and including Scotia Capital Inc., Haywood Securities Inc., Dundee Securities Corporation and Paradigm Capital Inc.
Cassels Brock & Blackwell LLP acted for the agents with a team that included Chad Accursi, Jay King and Peter McCague (securities). Red Back was represented by Bob Wooder, Trisha Robertson and Michelle Audet of Blake, Cassels & Graydon LLP.