Detour Gold Corporation

Detour Gold Corporation

November 17, 2009 14:44 ET

Detour Gold Appoints Barclays Capital as Project Debt Advisor and Lead Arranger for Detour Lake

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - 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.

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.

Contact Information

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