Canadian Mining Journal

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GOLD DEVELOPMENT: $428 million deal enough to complete Detour Lake mine

ONTARIO - Detour Gold of Toronto has completed a bought deal financing worth $428 million with which to finish construction at its Detour Lake gold mine 185 km northeast of Cochrane. The underwriters, led by BMO Capital Markets and TD...



ONTARIO – Detour Gold of Toronto has completed a bought deal financing worth $428 million with which to finish construction at its Detour Lake gold mine 185 km northeast of Cochrane. The underwriters, led by BMO Capital Markets and TD Securities, purchased approximately 14.4 million common shares of Detour Gold. Total cost of the project is $1.3 billion.

Detour says that the net proceeds of this deal, cash on hand and financing from Caterpillar are sufficient to take the project through to production. To the end of June 2011, the company had committed $815.3 million to the project.

The Detour deposit has measured and indicated resources of 510.0 million tonnes grading 1.08 g/t Au, or nearly 17.7 million oz of gold. Over 11.3 million oz are contained in the proven and probable reserves.

Complete information is available at www.DetourGold.com.