Red Back Closes Purchase of Tasiast Gold Mine
The Company has paid the purchase price (US$225 Million) to Lundin, paid out the Tasiast debt facility with Macquarie Bank Limited (US$42.5 million plus US$0.3 million interest) and retired the gold hedging structure (US$10.1 million). The result is that the Company is now the 100% owner of Tasiast, which is debt free and unhedged.
The Tasiast gold mine was officially opened by the President of Mauritania, His Excellency Sidi Mohamed Ould Cheikh Abdallahi, on July 18, 2007 with representatives of the Company in attendance. Tasiast is in the commissioning process with commercial production expected early in the fourth quarter of 2007. Initial annual production rates are scheduled at 108,000 ounces of gold at an average grade of 3.25 g/t.
The Tasiast deposit is within an extensive gold system that is largely under-explored. The deposit is open along strike and at depth. Tasiast is the first mine in the highly prospective 70 kilometre long by 15 kilometre wide north-south trending Archaen age Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits. The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt, virtually encompassing an entire mining district in the country.