Detour Gold (DGC-T) is raising $48.4 million in a bought-deal financing to advance its Detour Lake gold project 180 km northeast of Cochrane, Ont., the company reported today.
A syndicate of underwriters led by Raymond James and BMO Capital Markets have agreed to buy 4 million Detour shares at $12.10 apiece. The group has the option to buy an additional 400,000 shares for gross proceeds of $48.84 million.
The news was announced after Toronto Stock Exchange closed today, but the company gained 3%, or 37¢, closing at $12.60 a share on a trading volume of 949,000 shares.
Yesterday the company announced that it was going to be added to the S&P/TSX Composite Index.
Detour president and CEO Gerald Panneton said that being included on the index validates the company’s progress over the last two years.
“Our inclusion highlights the significant growth that Detour Gold has delivered to its shareholders since our (initial public offering) in January 2007,” Panneton said in a statement.
The company’s Detour Lake deposit, along the Abitibi greenstone belt in northeastern Ontario, has a measured and indicated resource of 242.9 million tonnes grading 1.38 gram gold per tonne totaling 10.8 million oz. gold and an inferred resource of 63.9 million tonnes grading 1.19 grams gold per tonne for of 2.4 million oz. gold.
The company is working on a feasibility study for Detour that’s evaluating an open pit operation.
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