Detour Gold Corporation
TSX : DGC

Detour Gold Corporation

November 09, 2010 17:39 ET

Detour Gold Announces Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2010) -

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Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to announce that it has entered into an agreement for an offering, on a best efforts private placement basis and led by Wellington West Capital Markets Inc., of 300,000 flow-through common shares ("Flow-Through Shares") at a price of $42.00 per Flow-Through Share for aggregate gross proceeds of $12,600,000 (the "Offering"). It is anticipated that approximately 40,000 Flow-Through Shares will be purchased by directors and officers of Detour Gold.

Closing is anticipated to occur on or about November 23, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX. The Flow-Through Shares will be subject to a four-month hold period in Canada.

Gross proceeds from the sale of the Flow-Through Shares will be used to fund qualifying ongoing exploration activities on the Company's large land position at Detour Lake, including the western extension of the Detour Lake deposit, which is currently under development. The Company has commenced a regional exploration program on the Detour Lake property, targeting the eastern extension of the Sunday Lake Deformation Zone ("SLDZ") at the Sunday Lake Property (where Detour Gold can earn a 50% interest from Conquest Resources Ltd.) and the Lower SLDZ, a potentially favorable structure traced over a 40 kilometre strike length, where limited historical drilling encountered some ore grade intercepts. In addition, the Mobile Metal Ion (MMI) soil sampling program, conducted this summer on approximately 50% of the Detour Lake property, has indicated a number of gold trending anomalies that will be tested by drilling in the first quarter of 2011.

About Detour Gold

Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.

Detour Gold Corporation, Royal Bank Plaza, South Tower, 200 Bay Street, Suite 2200, 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 potential for future gold discoveries. 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 actual results, performance or achievements to be materially different from any of 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 2009 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 Detour Lake gold 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; the receipt of necessary permits; market competition; ongoing relations with employees and impacted 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.

Contact Information

  • Detour Gold Corporation
    Gerald Panneton, President and CEO
    (416) 304.0800
    or
    Detour Gold Corporation
    Laurie Gaborit, Director Investor Relations
    (416) 304.0581