TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") is pleased to announce the appointment of Barclays Capital, the investment banking division of Barclays Bank PLC ("Barclays Capital"), as Lead Arranger for the debt financing of the Detour Lake gold deposit (the "Project") in Ontario, Canada. Barclays Capital will provide these services through the Mining & Metals team of its investment banking division.
In its capacity as Lead Arranger, Barclays Capital will work with the Company in advancing the Project with the aim of securing project debt financing for the construction and commissioning of the future mining and processing operations. The mandate of Barclays Capital includes the appointment of an independent engineering firm to perform a technical audit prior to the release of the feasibility study in the first half of 2010.
Barclays Capital is one of the leading providers of investment banking services to the mining sector, and has arranged and financed numerous projects in the gold sector. Grant Willis, Global Co-head of Mining & Metals at Barclays Capital, stated: "We are delighted to partner with Detour Gold in the financing of the Project. Detour Lake is one of the most promising undeveloped gold projects in the world at present and we look forward to working with the Detour Gold team to bring this project into production."
In making this announcement, Gerald Panneton, President and CEO of Detour Gold, stated: "We are very pleased to have the support of Barclays Capital as we continue to advance the Project towards production. Barclays Capital brings the necessary expertise and experience to ensure that we can appropriately structure project debt financings in a cost effective manner. This should allow us to maximize the debt potential for the Project and protect our lean capital structure."
In connection with the appointment, Barclays Capital has been issued warrants to purchase up to 500,000 common shares of the Company. The warrants have an exercise price of $15.33 per common share and have a term of five years. Fifty percent of the warrants vest six months after the date of issuance while the remaining warrants vest upon the achievement of certain prescribed milestones.
