John Paulson-backed Detour Gold raises $153 million for Ontario mine
Mid-tier Canadian gold producer Detour Gold (TSX:DGC) has raised $153 million to help fund its flagship asset, Detour Lake mine in northern Ontario.
Billionaire investor John Paulson's hedge fund Paulson & Co. is Detour's largest investor, owning roughly 13% of the Canadian miner as of last month.
Paulson's financial woes have been well documented of late, as the value of his personal stock holdings dropped over $300 million in just a couple days during gold's April collapse.
Paulson will hope that Detour, who recently announced that it will hit commercial production by 2013 Q3, can provide his fund with some good news.
Detour reported today that underwriters led by BMO Capital Markets agreed to purchase 17.5 million shares at C$8.75 apiece.
The company says it will use the money for "general corporate purposes" in addition to its ramp up of Detour Lake.
Sources: Simon Casey reporting for Bloomberg; Detour Gold