Detour Gold Closes Secured Letter of Credit Facility
TORONTO, ONTARIO--(Marketwire - Jan. 14, 2013) - Detour Gold Corporation (DGC.TO) ("Detour Gold" or the "Company") is pleased to report that it has successfully obtained a $45 million senior secured letter of credit facility (the "Facility"), available to the Company for financial assurance. All amounts are in Canadian dollars.
The Facility was jointly provided by BMO Capital Markets and Canadian Imperial Bank of Commerce. It was activated in December 2012 with the drawdown of $28.3 million which was used to replace cash collateralized bonds posted for the Detour Lake closure plan. At year-end, the Company's cash and short-term investments totalled $236 million, sufficient to cover remaining project construction expenditures of approximately $120 million and working capital requirements during the initial ramp-up period.
The Company anticipates closing a $90 million senior secured revolving credit facility that would be available for general corporate purposes in the second quarter of 2013.
About Detour Gold
Detour Gold is an emerging mid-tier gold producer in Canada. Its development project, Detour Lake, is scheduled to start gold production in January 2013. The Detour Lake open pit mine is expected to produce an average of 657,000 ounces of gold annually over a period of 21.5 years. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
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 sufficiency of funds to finance the remaining project expenditures and working capital requirements during the initial ramp-up period and closing a secured revolving credit facility. 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 the Business - Risk Factors" in Detour Gold's 2011 annual information form and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
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 supply and demand for gold, and the level and volatility of the price of gold; the availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the expected mine life; anticipated gold production; gold recovery; the development schedule; cash operating costs and other costs; the financial analysis for the project; capital costs; sensitivity to metal prices and other sensitivities; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such 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. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
