Canadian Mining Journal

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GOLD DEVELOPMENT: Funding secured for completion of Detour Lake mine, mill

ONTARIO - Toronto's Detour Gold has arranged a $372-million bought deal, the bulk of which will be used to complete the Detour Lake gold project 185 km northeast of Cochrane. A syndicate of underwriters led by BMO Capital Markets and TD...



ONTARIO – Toronto’s Detour Gold has arranged a $372-million bought deal, the bulk of which will be used to complete the Detour Lake gold project 185 km northeast of Cochrane. A syndicate of underwriters led by BMO Capital Markets and TD Securities has agreed to buy 12.5 million shares of the company at a price of $29.75 per share for gross proceeds of $371.88 million. An over-allotment option, if exercised, would raise an additional $55.78 million.

Detour Lake says the proceeds of the offering, together with cash on hand the equipment financing from Caterpillar, are sufficient to put the $1.3 billion project into production. The carbon-in-pulp (CIP) plant is to be commissioned beginning early in 2013. Total operating costs over the life of the project are estimated to be US$454/ounce.

Details of the project are posted at www.DetourGold.com or send an email to info@DetourGold.com.