Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the
"Company") is pleased to announce the appointment of Barclays Capital,
the investment banking division of Barclays Bank PLC ("Barclays
Capital"), as Lead Arranger for the debt financing of the Detour Lake
gold deposit (the "Project") in Ontario, Canada. Barclays Capital will
provide these services through the Mining & Metals team of its
investment banking division.
In its capacity as Lead Arranger, Barclays Capital will work with the
Company in advancing the Project with the aim of securing project debt
financing for the construction and commissioning of the future mining
and processing operations. The mandate of Barclays Capital includes the
appointment of an independent engineering firm to perform a technical
audit prior to the release of the feasibility study in the first half of
2010.
Barclays Capital is one of the leading providers of investment banking
services to the mining sector, and has arranged and financed numerous
projects in the gold sector. Grant Willis, Global Co-head of Mining
& Metals at Barclays Capital, stated: "We are delighted to partner
with Detour Gold in the financing of the Project. Detour Lake is one of
the most promising undeveloped gold projects in the world at present and
we look forward to working with the Detour Gold team to bring this
project into production."
In making this announcement, Gerald Panneton, President and CEO of
Detour Gold, stated: "We are very pleased to have the support of
Barclays Capital as we continue to advance the Project towards
production. Barclays Capital brings the necessary expertise and
experience to ensure that we can appropriately structure project debt
financings in a cost effective manner. This should allow us to maximize
the debt potential for the Project and protect our lean capital
structure."
In connection with the appointment, Barclays Capital has been issued
warrants to purchase up to 500,000 common shares of the Company. The
warrants have an exercise price of $15.33 per common share and have a
term of five years. Fifty percent of the warrants vest six months after
the date of issuance while the remaining warrants vest upon the
achievement of certain prescribed milestones.
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
Forward-Looking Information
This press release contains certain forward-looking information as
defined in applicable securities laws (referred to herein as
"forward-looking statements"). Specifically, this press release contains
forward-looking statements regarding the advancement of the Project and
the securing of debt financing for the construction and commissioning
of the future mining and processing operations for the Project.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which are beyond Detour Gold's ability
to predict or control and may cause Detour Gold's actual results,
performance or achievements to be materially different from any of its
future results, performance or achievements expressed or implied by
forward-looking statements. These risks, uncertainties and other factors
include, but are not limited to, gold price volatility, changes in debt
and equity markets, the uncertainties involved in interpreting
geological data, increases in costs, environmental compliance and
changes in environmental legislation and regulation, interest rate and
exchange rate fluctuations, general economic conditions and other risks
involved in the gold exploration and development industry, as well as
those risk factors discussed in the section entitled "Description of
Business - Risk Factors" in Detour Gold's 2008 annual information form.
Such forward-looking statements are also based on a number of
assumptions which may prove to be incorrect, including, but not limited
to, assumptions about the following: the availability of financing for
exploration and development activities; the estimated timeline for the
development of the Project; the supply and demand for, and the level and
volatility of the price of, gold; the accuracy of reserve and resource
estimates and the assumptions on which the reserve and resource
estimates are based; market competition; ongoing relations with
employees and local communities; and general business and economic
conditions. Accordingly, readers should not place undue reliance on
forward-looking statements. Detour Gold undertakes no obligation to
update publicly or otherwise revise any forward-looking statements
contained herein whether as a result of new information or future events
or otherwise, except as may be required by law.
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