Detour Gold completes $427.7 million bought deal offering

On August 4, 2011, Detour Gold completed a bought deal offering in Canada and the U.S. of 14,375,000 common shares for aggregate gross proceeds of $427.7 million. The purchased shares included 1,875,000 common shares made available for issuance pursuant to the exercise of an over-allotment option granted to the syndicate of underwriters, which was led by BMO Capital Markets and TD Securities Inc., and which included CIBC World Markets Inc., Raymond James Ltd., RBC Dominion Securities Inc., Canaccord Genuity Corp., Credit Suisse Securities (Canada), Inc., Haywood Securities Inc., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., UBS Securities Canada Inc., Fraser Mackenzie Limited, NCP Northland Capital Partners Inc. and Paradigm Capital Inc. The offering was conducted as a prospectus offering in Canada and a private placement in the U.S.

Detour Gold is a Canadian gold exploration and development company whose focus is advancing the development of its Detour Lake gold project, located in northeastern Ontario. The company intends to use the net proceeds of the offering to complete the $1.3 billion construction of the project, for working capital and for general corporate purposes. The net proceeds of the offering, together with cash on hand and the company’s recently completed Caterpillar equipment financing, are sufficient to finance the Detour Lake gold project through to production. Detour Gold’s shares trade on the Toronto Stock Exchange under the symbol “DGC”.

Detour Gold was represented in-house by Julie Galloway, Vice President and General Counsel, and by McMillan LLP with a team that included David Mendicino (corporate and Canadian securities), Herb Ono (U.S. securities), Matt German (real estate) and Ryan Morris (tax)