Create FREE account or log in

to receive MINING.COM digests

Detour Gold closes US$105 million financing for mining fleet

Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) is pleased to announce the closing of the previously announced agreement with Caterpillar Financial (“Cat Financial”) pursuant to which Cat Financial will underwrite US$105 million in mobile fleet equipment financing to fund the Company’s acquisition of Cat mining equipment supplied by Toromont Industries Limited (a Cat dealer in Ontario), for the Detour Lake gold project in northeastern Ontario (the “Equipment Financing Facility”).

The Equipment Financing Facility will be available to the Company upon the satisfactory completion of customary conditions precedent and will be used 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 is 5.5 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.

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.