Detour Gold Corporation

Detour Gold Corporation
PDX Resources Inc.

PDX Resources Inc.

March 26, 2009 12:08 ET

Shareholders of Detour Gold and PDX Resources Approve Merger; Merger to be Effective on March 27, 2009

TORONTO, ONTARIO--(Marketwire - March 26, 2009) - Detour Gold Corporation (TSX:DGC) ("Detour Gold") and PDX Resources Inc. (TSX:PLG) ("PDX") announce that the merger of the companies was approved today at separate special meetings of their respective shareholders.

Gerald Panneton, President and Chief Executive Officer of Detour Gold, stated, "We are pleased that the shareholders of Detour Gold and PDX recognize the benefits of the merger. We look forward to completing the merger and advancing the Detour Lake project under a simplified ownership structure with a broader investor base and assisted by a respected and experienced board of directors."

The parties expect that articles of amalgamation will be filed shortly, providing for the amalgamation of PDX and a wholly-owned subsidiary of Detour Gold (the "Amalgamation") to be effective tomorrow, March 27, 2009, at 12:01am (Edmonton time) (the "Effective Time"). At the Effective Time, outstanding common shares of PDX will be cancelled. Registered holders of common shares of PDX immediately prior to the Effective Time will receive 0.2571 of a common share of Detour Gold in exchange for each PDX share cancelled; provided that, if this exchange would result in any such holder receiving a fractional Detour Gold share, then the number of Detour Gold shares issued to that holder will be rounded up to the next whole number.

A PDX shareholder may obtain a share certificate representing the Detour shares to which he or she is entitled by depositing with Computershare Investor Services Inc. the certificate(s) representing the PDX shares held by him or her, together with a properly completed letter of transmittal. Instructions on how to exchange PDX share certificates are described in the letter of transmittal which accompanied the Joint Management Information Circular of Detour and PDX dated February 20, 2009 (the "Joint Circular") mailed in connection with the merger. Copies of the letter of transmittal and the Joint Circular are available on SEDAR at or by written request to the Director Investor Relations of Detour Gold at the address provided below.

About PDX Resources Inc.

PDX's principal asset is its 19 million common shares (representing a 42.2% equity interest) of Detour Gold. At the Effective Time, the successor to PDX resulting from the Amalgamation will be a wholly-owned subsidiary of Detour Gold. Following the Effective Time, Detour Gold intends to wind-up this successor company and cause the 19 million Detour Gold common shares that it holds to be cancelled.

About Detour Gold Corporation

Detour Gold is a Canadian gold exploration and development company whose focus is to advance the development of its Detour Lake project located in northeastern Ontario. The Amalgamation will not materially affect the outstanding share capital of Detour Gold as the number of Detour Gold common shares to be issued in the Amalgamation will be almost equal to the number to be cancelled following the Amalgamation. On a post-merger basis, Detour Gold will have approximately 45,014,000 common shares issued and outstanding.

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Forward-looking information includes, but is not limited to, information concerning the merger between Detour Gold and PDX and matters relating thereto. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding: Detour Gold's planned drilling program and estimate of the quantity and quality of its mineral resources. Inherent in forward-looking statements are risks, uncertainties and other factors beyond Detour Gold's and PDX's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in interpreting geological data and other risks involved in the gold exploration and development industry as well as those risk factors listed in Detour Gold's Annual Information Form (AIF), Item 4.4 - "Description of Business - Risk Factors" filed on SEDAR.

Readers are cautioned that the list of factors included in the AIF is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: Detour Gold's exploration and development activities on the Detour Lake Property will proceed in accordance with Detour Gold's current timetables; and Detour Gold's resource estimates, geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources) and operational and price assumptions on which the resource estimates are based, are accurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Detour Gold's and PDX'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. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Neither Detour Gold or PDX undertakes any obligation to update publicly or otherwise revise any forward-looking statements 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
    Detour Gold Corporation
    Royal Bank Plaza, North Tower,
    200 Bay Street, Suite 2040,
    Toronto, Ontario M5J 2J1