TORONTO, ONTARIO–(Marketwired – June 25, 2015) – Detour Gold Corporation (TSX:DGC) (“Detour Gold” or the “Company”) is pleased to report that it has amended its $135 million senior secured credit facility (the “Facility”). The Facility is now comprised of an $85 million revolving credit facility (previously $90 million) and a $50 million letter of credit facility (previously $45 million). The term of the Facility has been extended from March 8, 2016 to August 31, 2017 and is available for financial assurance and general corporate purposes. All amounts are in Canadian dollars.
Other significant amendments to the Facility include the elimination of the Completion Test and more flexible financial covenants. The maximum leverage ratio will now be 4.5:1 at June 30, 2015 (versus the prior 3.5:1 ratio) and declining to 3.5:1 after September 30, 2016, and the minimum interest coverage ratio will now be 3.0:1 at June 30, 2015 (versus the prior 3.5:1 ratio) and increasing to 3.5:1 after September 30, 2016.
As of the date of this release, the Company has no amount drawn under the revolving credit facility and $42.6 million drawn under the letter of credit facility.
The Facility is co-lead by BMO Capital Markets and Canadian Imperial Bank of Commerce and includes commitments from Commonwealth Bank of Australia, Royal Bank of Canada and The Toronto-Dominion Bank.
About Detour Gold
Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation.
Detour Gold is Moving
Effective, June 29, 2015, Detour Gold’s corporate office will be located at 199 Bay Street, Suite 4100, P.O. Box 121, Commerce Court Postal Station, Toronto, Ontario M5L 1E2.
Forward-Looking Information
This news release and linked presentation contain 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 Facility providing an additional source of liquidity for the Company with greater financial flexibility.
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 Detour Gold’s actual results, performance or achievements to be materially different from any of its 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 2014 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. 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; operating and capital costs; the Company’s ability to attract and retain skilled staff; the mine development schedule; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for development projects and other operations; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; 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. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such 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. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
