TORONTO, ONTARIO--(Marketwire - Aug. 16, 2011) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to announce that it has executed a term sheet with Caterpillar Financial Services Limited ("Cat Financial"), pursuant to which Cat Financial has agreed to underwrite an additional mining fleet lease facility of approximately US$40 million to fund the Company's acquisition of additional Caterpillar mobile fleet equipment including two rope shovels (the "Mobile Equipment") for the Detour Lake gold project in northeastern Ontario. The additional US$40 million financing (the "Additional Facility") is in addition to the previously announced US$105 million mobile fleet equipment financing provided by Cat Financial.
The term of the Additional Facility will be five (5) years and will be secured by the Mobile Equipment. Title to the Mobile Equipment will transfer to the Company at the completion of the lease.
Closing of the transaction is anticipated to occur in the third quarter of 2011 and is subject to customary conditions including completion of final documentation and satisfactory completion of conditions precedent.
About Detour Gold
Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project, located in northeastern Ontario, towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
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 closing of the transaction. 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 actual results, performance or achievements to be materially different from any of 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 Business - Risk Factors" in Detour Gold's 2009 annual information form. 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 availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; 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. 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.