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Red Back to Acquire Moto Goldmines

2 June 2009

Canada’s Red Back Mining will acquire Toronto-based Moto Goldmines for C$513m.

Under the agreement, each outstanding common share of Moto will be exchanged for 0.45 of a common share of Red Back, at C$10.45 per share.

The acquisition combines Red Back’s two gold mines — Chirano Mine in Ghana and Tasiast Mine in Mauritania — and Moto's 70% stake in the Moto gold project in the Democratic Republic of Congo.

On completing the transaction, Moto will become a wholly-owned subsidiary of Red Back.

The commissioning of Moto Gold Mine will bring more than one million ounces of gold per annum and is set to provide cash operating benefits.

By staff writer