Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to announce that it has exercised its option on
the Detour Lake mine property (the "Mine Option Property") and has
acquired ownership of the Mine Option Property from Goldcorp Canada Ltd.
("Goldcorp") pursuant to the previously announced agreement (the
"Purchase Agreement") between the Company and Goldcorp described in the
Company's April 15, 2008 press release. Detour Gold is now the sole
owner of the Mine Option Property, including all surface rights.
The Detour Lake gold deposit, currently the focus of Detour Gold's
feasibility study, is located on the Mine Option Property.
Pursuant to the terms of the Purchase Agreement, the Company has assumed
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. In connection with the
closing of this transaction, the Company has become the proponent under
an amended mine closure plan for the Mine Option Property (the "Amended
Closure Plan") pursuant to the Mining Act (Ontario) and has
posted a letter of credit with the Ontario Ministry of Northern
Development and Mines in the amount of Cdn$6.5 million to secure its
obligations under the Amended Closure Plan.
As part of this transaction the following permits will be transferred to
Detour Gold: Certificate of Approval for Industrial Sewage Works
(existing tailing facility), Certificate of Approval for landfill,
approval for two aggregate pits and a land use permit for the Mine
Option Property access road.
In addition, Detour Gold has granted Goldcorp a 1% royalty on the net
smelter returns (the "NSR") derived from the Mine Option Property in
accordance with the terms of the Option and Access Agreement dated
December 10, 1998. The Company has the right to purchase the NSR from
Goldcorp at any time by paying Goldcorp the sum of Cdn$1 million.
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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