Detour Gold completes share sale

15 February 2012 (Last Updated February 15th, 2012 18:30)

Detour Gold Corporation has completed its previously announced bought deal public offering of common shares for total gross proceeds of C$277m ($278.2m).

Detour Gold Corporation has completed its previously announced bought deal public offering of common shares for total gross proceeds of C$277m ($278.2m).

Initially underwriters led by BMO Capital Markets and CIBC agreed to purchase a total of 8.6 million common shares but have now purchased an additional 1.29 million shares which were made available before to the exercise of their over-allotment option.

Detour Gold plans to use the net proceeds of the offering to complete the $1.45bn construction of its Detour Lake gold project located in Ontario, Canada.

The funds will also be utilised for economic studies on the Block A near-surface resources, working capital and for general corporate purposes, including further exploration on the Lower Detour Deformation Zone.

The company committed $1.09bn towards capital expenditures, of which C$680m ($683m) has been incurred, as of 31 December 2011.

The news follows Detour's announcement earlier this month that it had completed a financing deal with Caterpillar Financial to secure $150m.

The funds will be used to finance the company's acquisition of CAT mining equipment for the Detour Lake gold project.