Detour Gold has executed a term sheet with Caterpillar Financial Services for additional funding for its mining fleet.

Cat Financial will provide $40m to fund the company’s acquisition of additional Caterpillar mobile fleet equipment, including two rope shovels for the Detour Lake gold project in north-eastern Ontario.

The financing will be provided for a term of five years, and is an addition to the previously announced $105m mobile fleet equipment financing provided by Caterpillar Financial.

The transaction is expected to occur in the third quarter of 2011 subject to customary conditions, including completion of final documentation and satisfactory completion of conditions precedent.