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Detour Gold Corporation (TSX:DGC - News; "Detour
Gold" or the "Company") is pleased to announce that it has
executed a term sheet with Caterpillar Financial ("Cat Financial"),
pursuant to which Cat Financial has agreed to underwrite up to US$105 million
in mobile fleet equipment financing to fund the Company's previously
announced acquisition of Cat mining equipment supplied by Toromont Industries
Limited (a Caterpillar dealer in Ontario), for the Detour Lake gold project
in northeastern Ontario (the "Equipment Financing Facility").
The Equipment Financing Facility will be
utilized towards the acquisition cost of 23 Cat 795F - 322-tonne haul trucks
and ancillary equipment (the "Mobile Fleet") being supplied by
Toromont (the "Lease"). Deliveries of the Mobile Fleet are expected
to commence arriving at site in mid-2011 and be completed in early 2013. The
term of the Equipment Financing Facility will be 5 years and will be secured
by the Mobile Fleet. Title to the Mobile Fleet will transfer to the Company
at the completion of the Lease.
Closing of the transaction is
anticipated to occur in the first quarter of 2011 and is subject to customary
conditions including completion of final documentation, satisfactory
completion of conditions precedent and receipt of final internal credit
approval.
"We have crossed another important
milestone in the development of the Detour Lake project. Detour Gold is
delighted to have Cat Financial endorse the future Detour Lake mining
operation and we look forward to completion of the facility," said
Gerald Panneton, President and CEO of Detour Gold.
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"). Specifically,
this press release contains forward-looking statements regarding the closing
of the transaction and the delivery of the mobile fleet. 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, the satisfaction of the closing conditions
of the Transaction, 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 satisfaction of the
closing conditions of the Transaction, 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.
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