TORONTO, July 20, 2018 /CNW/ - Following the release
of its updated life of mine plan ("2018 LOM Plan"), Detour Gold
Corporation (TSX: DGC) ("Detour Gold" or the "Company") is pleased
to announce the next steps in its ongoing plan to grow long-term
shareholder value. While the Board of Directors (the "Board") is
determinedly focused on operational excellence, it recognizes the
need for the Company's strategy to continue to evolve.
"In taking these next steps on our path to long-term value
creation we are demonstrating our intensified commitment to
optimizing the Detour Lake operation," said Alex Morrison, Chairman. "As we indicated in
our June 27 news release, the Company
remains focused on the implementation of the 2018 LOM Plan. We are
committed to improving upon Detour Lake's past operational
performance by making the changes needed to ensure it becomes a
consistently profitable operation and giving our new Chief
Operating Officer, Frazer Bourchier, the time and support he needs
to execute. Further enhancing our Board with additional
operational expertise and providing shareholders with background on
our Special Committee demonstrates that the Board has always been,
and remains, committed to creating long-term value for all
shareholders."
Enhanced Board Expertise: Operations & Corporate Social
Responsibility
The Board maintains a skills matrix of the expertise required by
Detour Gold, against which it measures the composition of the Board
on an ongoing basis. In early 2018, the Corporate Governance and
Nominating Committee concluded that the composition of the Board
would be enhanced with the addition of members possessing
operational expertise in large-scale open pit mining and experience
in corporate social responsibility, including First Nations
engagement. The Board agreed with this recommendation and a search
for such candidates commenced in the spring. As the result of these
efforts, we anticipate announcing two new directors to replace
existing board members in the near term.
Background on Special Committee
The release of the 2018 LOM Plan has provided the Company with a
strong foundation for future success. Detour Gold has gone through
a significant evolution since its inception, from an exploration
stage company, to a mine builder, and now to an established mine
operator.
Over that time period and transition, the Company has had in
place a Special Committee which has a history of responsibly
evaluating potential value creating opportunities. While the
Company remains firm in its belief that a public auction of the
Company at this time is not in the best interests of shareholders,
it is providing disclosure about this committee in response to
shareholder interest and as an indication that the Board has always
been willing to explore alternatives that compete with the value
delivered by the Company's standalone plan. Over the years, the
Special Committee has been active as required and, whenever the
Company was approached, approved the signing of confidentiality
agreements and considered various strategic alternatives. During
those periods, no offers to purchase the Company's shares
emerged.
Today, the focus of the Special Committee is to help further
define the strategic direction of the Company as an operating,
single asset mining company. While implementation of the 2018 LOM
Plan remains the Company's priority, the Special Committee will
continue to responsibly review and evaluate various other strategic
avenues for the Company to generate long-term shareholder value,
just as it has done in the past. Such avenues may include,
acquisitions, mergers, joint ventures, sale of the Company,
strategic investments and capital raising as needed to support a
particular strategic initiative.
Update on CEO Search
While Michael Kenyon's role is
transitional, the Board continues to believe that the combination
of Michael Kenyon as Interim CEO and
Frazer Bourchier as the new Chief Operating Officer is the most
stable solution in the near term to allow the Company to focus on
operational improvements. As the 2018 LOM Plan rolls out under the
leadership of Frazer Bourchier and as the Company stabilizes from
the market interference activity of Paulson & Co., the Board
will conduct a skills and needs search for the ideal candidate to
take the Company into its next chapter.
Advisors
The Company has retained Kingsdale Advisors as strategic
shareholder and communications advisor, BMO Capital Markets as
financial advisor, and McCarthy Tétrault LLP and Norton Rose
Fulbright LLP as its legal advisors.
About Detour Gold
Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the
Detour Lake mine, a long life large-scale open pit operation.
Detour Gold's shares trade on the Toronto Stock Exchange under the
trading symbol DGC.
Media Contact:
Ian Robertson
Executive Vice President, Communication Strategy
Kingsdale Advisors
Direct: 416-867-2333
Cell: 647-621-2646
Email: irobertson@kingsdaleadvisors.com
Shareholder and Investor Contact:
Laurie Gaborit
Vice President, Investor Relations
Detour Gold Corporation
Tel: 416-304-0581
Email: lgaborit@detourgold.com
Detour Gold Corporation, Commerce Court West, 199 Bay Street,
Suite 4100, P.O. Box 121, Toronto,
Ontario M5L 1E2
SOURCE Detour Gold