Deal's funds earmarked for exploration program on Detour Lake property
By Devika Patel
Knoxville, Tenn., Nov. 9 - Detour Gold Corp. said it arranged a private placement of stock through agent Wellington West Capital Markets Inc.
The company will sell 300,000 common shares at C$42.00 per share for C$12.6 million in a best efforts offering.
The price per share is a 31.79% premium to the Nov. 8 closing share price of C$31.87.
Settlement is expected Nov. 23.
Proceeds 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 launched a regional exploration program on the Detour Lake property, targeting the eastern extension of the Sunday Lake Deformation Zone at the Sunday Lake Property (where the company may earn a 50% interest from Conquest Resources Ltd.) and the Lower Sunday Lake Deformation Zone, a potentially favorable structure traced over a 40 kilometer strike length, where limited historical drilling encountered some ore grade intercepts.
In addition, the Mobile Metal Ion soil sampling program, conducted this summer on about half 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.
The gold exploration and development company is based in Toronto.
| Issuer: | Detour Gold Corp.
|
| Issue: | Common shares
|
| Amount: | C$12.6 million
|
| Shares: | 300,000
|
| Price: | C$42.00
|
| Warrants: | No
|
| Agent: | Wellington West Capital Markets Inc.
|
| Pricing date: | Nov. 9
|
| Settlement date: | Nov. 23
|
| Stock symbol: | Toronto: DGC
|
| Stock price: | C$31.36 at close Nov. 9
|
| Market capitalization: | C$2.6 billion
|
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