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.