Detour Gold Announces Mine Truck Fleet Contract With Toromont (Caterpillar) for Its Detour Lake Project
TORONTO, ONTARIO -- (Marketwire) -- 09/16/10 -- Detour Gold Corporation (TSX: DGC) ('Detour Gold' or the 'Company') is pleased to announce that it has entered into an agreement with Toromont Industries Limited (a Caterpillar dealer in Ontario) for the life of mine requirement of up to 36 350-ton class Caterpillar 795F haulage trucks for its 100%-owned Detour Lake gold project in northeastern Ontario. The initial purchase release of 18 trucks has been issued with 6 trucks to be delivered in Q4 2011 and 12 trucks planned for delivery in Q3/Q4 2012. The agreement also includes mine support equipment with an initial order for approximately 15 pieces of mine support equipment prior to the end of 2010. The total value of the 18 trucks and support equipment to be ordered in 2010 is approximately Cdn$125 million.
Detour Gold is presently evaluating financing proposals for the fleet of trucks and subsequent support equipment, including a proposal from Caterpillar Financial Services Corporation. The Company expects to finalize the terms and conditions for the financing by October 2010.
'We are pleased to have Toromont supplying and supporting the equipment fleet for the Detour Lake project. Toromont, with the support of Caterpillar (CAT), has committed significant resources to ensure the successful start-up and long-term operation of the fleet. An integral component of the agreement includes finalizing a maintenance and repair contract with Toromont-CAT over the next several months' said Gerald Panneton, President and CEO of Detour Gold. 'With this order, the Company has now entered into commitments of approximately Cdn$304 million for the development of the Detour Lake project over the next 27 months. We are continuing to assess our project financing strategy, including the appointment of a lead group of banks to secure the remaining financing for the project.'
New Appointment at Detour Gold
Detour Gold has appointed Julie Galloway as Vice President, General Counsel and Corporate Secretary. Ms. Galloway has 15 years of corporate legal experience in the mining industry, most recently serving as General Counsel and Corporate Secretary for FNX Mining Company Inc. She also served as General Counsel for Dynatec Corporation and in various capacities with Falconbridge/Noranda (now Xstrata) including as Associate General Counsel and Corporate Secretary. She started her career at the law firm Blake, Cassels and Graydon. She received a B.A. (Hons.) in economics and political science from the University of Waterloo and an LL.B. from the University of Toronto.
About Detour Gold
Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.
Forward-Looking Information
This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as 'forward-looking statements'). Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold's ability to predict or control and may cause actual results, performance or achievements to be materially different from any of future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the section entitled 'Description of Business - Risk Factors' in Detour Gold's 2009 annual information form. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; the estimated timeline for the development of the Detour Lake gold project; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.
Contacts:
Detour Gold Corporation
Gerald Panneton
President and CEO
(416) 304.0800
Detour Gold Corporation
Laurie Gaborit
Director Investor Relations
(416) 304.0581
Detour Gold Corporation
Royal Bank Plaza, South Tower
200 Bay Street, Suite 2200
Toronto, Ontario
M5J 2J1