ONTARIO – Detour Gold Corp. of Toronto has closed a US$500-million private placement of unsecured convertible notes. The notes, bearing a 5.5% rate, will mature on Nov. 30, 2017. Half of the notes was purchased by a syndicate of underwriters led by BMO Capital Markets and including RBC Capital Markets and UBS Securities Canada. The other half was purchased by Paulson & Co. on behalf of several investment funds.
Detour Gold will use the net proceeds to bring its Detour Lake gold mine into production in Northern Ontario. The company now has the majority of the funding in place to complete the US$992-million project. Proven and probable reserves at Detour Lake total 347.5 million tonnes grading 1.02 g/t Au or 11.4 million oz of contained gold. Truck-and-shovel open pit mining is planned for at least 16 years.
The company and the Metis Nation of Ontario recently signed a memorandum of understanding that covers development of the Detour Lake mine. The MOU outlines the way the local Metis have been and will be consulted regarding the mine and addresses potential impacts on Metis way of life. It further commits both sides to address any impacts and agree to compromise.
The Detour Lake feasibility report is posted on SEDAR (www.Sedar.com) or see www.DetourGold.com for additional information.