Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to announce that it has entered into an agreement
(the "Purchase Agreement") with Goldcorp Canada Ltd. ("Goldcorp")
pursuant to which the Company will exercise its option (the "Option")
and will acquire ownership of the Detour Lake mine property (the "Mine
Option Property") from Goldcorp (the "Transaction"). Following the
completion of the Transaction, Detour Gold will be the sole owner of the
Mine Option Property, including all the surface rights.
The Detour Lake gold deposit, currently the focus of Detour Gold's
exploration activities and feasibility study, is located on the Mine
Option Property.
Pursuant to the terms of the Purchase Agreement, the Company will assume
all of Goldcorp's liabilities and obligations relating to the Mine
Option Property and certain other exploration properties in the Detour
Lake and Massicotte areas of Ontario and Quebec. Upon the exercise of
the Option and the closing of the Transaction, as per the terms of the
Option and Access Agreement dated December 10, 1998, Detour Gold will
grant Goldcorp a 1% royalty on the net smelter returns derived from the
Mine Property (the "Mine Property NSR"). The Company will have the
right to purchase the Mine Property NSR from Goldcorp at any time by
paying Goldcorp the sum of $1,000,000.
The exercise of the Option and the closing of the Transaction is subject
to Detour Gold and Goldcorp obtaining all necessary third party
approvals and consents, the filing of an amended mine closure plan for
the Mine Option Property, and other customary conditions. The amended
mine closure plan is expected to be filed with the Ministry of Northern
Development and Mines of Ontario in the second quarter of 2008. The
Transaction is expected to close in the third quarter of 2008.
For further information, please contact:
Gerald Panneton
President and CEO
Tel: (416) 304.0800
Laurie Gaborit
Director Investor Relations
Tel: (416) 304.0581
Detour Gold Corporation, Royal Bank Plaza, North Tower, 200 Bay Street,
Suite 2040, Toronto, Ontario M5J 2J1
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