Detour Gold Responds to Mini-Tender Offer by TRC Capital
TORONTO, ONTARIO--(Marketwired - Jan 4, 2017) - Detour Gold Corp. (TSX:DGC) ("Detour Gold" or the "Company") has been notified of an unsolicited mini-tender offer made by TRC Capital Corporation ("TRC Capital") to purchase up to 5,000,000 Detour Gold common shares, or approximately 2.86 percent of the Company's outstanding common shares, at a price of Cdn$15.25 per share. Detour Gold does not endorse this unsolicited mini-tender offer and recommends that shareholders do not tender their shares in response to the offer.
Shareholders are cautioned that the mini-tender offer has been made at a price below market, representing a discount of 4.69 percent to the closing price of Detour Gold's common shares on December 23, 2016, the last trading day before the mini-tender offer was commenced.
The Company does not endorse TRC Capital's unsolicited mini-tender offer and is not associated with TRC Capital, the mini-tender offer, or the mini-tender offer documentation.
TRC Capital has made similar unsolicited mini-tender offers for shares of other public companies. Mini-tender offers are designed to seek less than five percent of a company's outstanding shares, thereby avoiding many disclosure and procedural requirements applicable to most bids under Canadian securities legislation. The Canadian Securities Administrators ("CSA") have expressed serious concerns about mini-tender offers such as the possibility that investors might tender to a mini-tender offer based upon a misunderstanding of the terms of the offer, including the per securities price available under the offer relative to the market price of such securities. Comments from the CSA on mini-tenders can be found on the Ontario Securities Commission website at: http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_19991210_61-301.jsp.
According to TRC Capital's offer documents, Detour Gold shareholders who have already tendered their shares may withdraw their shares at any time before 12:01 am (Toronto time) on January 27, 2017 by following the procedures described in the offer documents.
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.
Contact
Paul Martin
President and CEO
(416) 304.0800
Laurie Gaborit
Director Investor Relations
(416) 304.0581