03:05 PM EST, 12/10/2018 (MT Newswires) -- Adds comment from Paulson & Co in paragraphs four and five; updates shares.)
Detour Gold (DGC.TO) was at last look up 2.3% after the company on Monday said it is delaying the deadline for shareholder to vote in a proxy battle launched by shareholder Paulson & Co by a day, until December 12. as it admitted that the vote to unseat the current board and management was not going in its favor, a move Paulson called manipulative.
The company, which is under attack because of its management of an Ontario gold mine, said in a statement it is extending the voting deadline by a day and delaying a special meeting to December 13 from December 11, because it appears to be losing the vote and wants to ensure all shareholders have time to consider the decision.
"Preliminary voting results indicate that vote dispersion, coupled with a significant shareholding bloc having voted with Paulson & Co, will lead to a change of control of Detour Gold's board of directors. This result would be inconsistent with the intentions expressed to Detour Gold by the vast majority of shareholders we have spoken with. Briefly postponing the meeting gives shareholders an opportunity to make an informed choice."
Detour said large shareholders, including Paulson, controlling 24% of the shares have voted in favor of removing all the company's directors, threatening to overturn the company because, Detour said, of an over-complex voting process. However Paulson said management's move to delay the process is only an attempt to manipulate the process and called for the immediate release of voting results.
"According to the limited information released by the company this morning, shareholders of Detour Gold have voted to remove several entrenched directors and to replace them with at least five qualified independent director nominees," the hedge fund said in a statement. "... The Board's continued shameful attempts to ignore the will of shareholders are desperate moves to entrench themselves at the expense of the company."
Detour shares were last seen up $0.24 to $10.60 on the Toronto Stock Exchange after earlier touching $10.60.