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Paulson rejects settlement with Detour Gold

(Adds details of Paulson demands)

Oct 12 (Reuters) - Hedge fund Paulson & Co has rejected proposals from Canadian miner Detour Gold Corp which would have removed its interim chief executive officer in aid of settling a proxy dispute over the company's future, Detour said on Friday.

The settlement Detour said it had proposed to Paulson on Oct. 9 would have resulted in almost half of its board being refreshed in six weeks, with interim CEO Michael Kenyon stepping down before the next annual general meeting.

A spokesman for Paulson said it had instead made new proposals to Detour earlier on Friday and was continuing to press for a complete change of the board.

"Paulson provided the company with two settlement alternatives this morning ... we have not received a response to our good-faith offer other than through the media," the spokesperson told Reuters.

"Detour's directors could have done the right thing ... instead, they have opted to prolong their inevitable ouster at the hands of shareholders," the spokesperson added.

He gave no details of the new offers the hedge fund had made.

The company's shares, which have fallen nearly 26 percent this year, fell nearly 2 percent on Friday.

"Our Board has decided to keep our reasonable settlement offer open to Paulson," Detour Chairman Alex Morrison said.

Paulson, which has called for the company to explore strategic alternatives including a sale, in July called for a special shareholders meeting and nominated eight new directors for appointment to Detour's board.

The company instead made three new appointments to its board, which were criticised by the hedge fund. (Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur and Patrick Graham)