Red Back (RBI.T) Accelerates Expiry of CA$2.50 Warrants
[Note: Red Back is now trading at CA$2.80. Disclosure: I have some stock, not the warrants, and recently doubled-up on it. FL]
NEWS RELEASE
RED BACK MINING INC. ACCELERATES EXPIRY DATE OF SHARE PURCHASE WARRANTS
January 19, 2006 (RBI - TSX) Red Back Mining Inc. (the “Corporation” or “Red Back”) announces that, inaccordance with the terms of the indenture setting out their terms, the Corporation is electing to accelerate the expiry date of all currently outstanding common share purchase warrants (the “Warrants”) which were issued in connection with a private placement financing on June 9, 2004. The Warrants are exercisable to acquire up to a maximum of 3,885,000 common shares at a price of $2.25 each.
Under the terms of the warrant indenture, if the weighted average trading price of the Corporation’s shares for 30 consecutive trading days is equal to or exceeds $2.50, the Corporation may accelerate the expiry date of the Warrants. Since the weighted average trading price of Red Back’s shares has exceeded $2.50 for the requisite 30 consecutive trading days, Red Back has today exercised its right and caused to be mailed to each holder of Warrants a notice confirming the acceleration of the expiry date of the Warrants to March 2, 2006. All Warrants must be exercised on or before 5:00 p.m. Vancouver time on March 2, 2006, failing which they will expire.
A holder wishing to exercise its Warrants must, on or before 5:00 p.m. on March 2, 2006:
1. Complete and execute, with signature appropriately guaranteed, the Exercise Form that is attached to the original warrant certificate;
2. Issue a certified cheque or money order payable to Red Back Mining Inc. in the amount of $2.25 per Warrant exercised; and
3. Deliver the original warrant certificate, the duly completed, executed and guaranteed Exercise Form and the certified cheque or money order in payment of the exercise price, to:
COMPUTERSHARE TRUST COMPANY OF CANADA
3rd floor – 510 Burrard Street
Vancouver, B.C. V6C 3B9
Attention: Judith Conyette, Corporate Trust Department, phone (604) 661-9567
If a holder of Warrants has questions regarding the exercise of their Warrants, please contact Judith Conyette at Computershare Trust Company of Canada at the above telephone number. Warrants that have not been duly exercised on or before 5:00 p.m. Vancouver time on March 2, 2006 will expire immediately thereafter.
On behalf of the Board of Directors
“Richard P. Clark”
President
Red Back Mining Inc
2101 - 885 West Georgia Street, Vancouver, BC Canada V6C 3E8
Tel: (604) 806-3070 Fax: (604) 689-5452 redbackmining.com
AI
