Detour Gold Corp. (TSX: DGC) has trimmed its debt by using existing cash, reporting that the company repurchased $60 million of convertible notes for an aggregate purchase price (including principal and premium) of $62.1 million, plus accrued and unpaid interest of $0.7 million. For the year to date, Detour has repurchased $142 million in face value of convertible notes, reducing the amount due at maturity in November 2017 to $358 million. The convertible notes were sold in December 2010 to finance development of the Detour Lake gold mine in northeastern Ontario. “As the company’s financial position continues to strengthen, we have taken this opportunity to further reduce debt levels from existing cash balances. With continued confidence in the gold price, we expect to refinance less than $300 million of notes at maturity,” says James Mavor, chief financial officer.

By Allen Sykora of Kitco News; asykora@kitco.com

AuRico Metals Closes Equity Financing, Private Placement With Alamos Gold

Monday August 22, 2016 09:44

AuRico Metals Inc. (TSX: AMI) announces the closing of its previously announced bought deal offering of 11.5 million common shares at C$1 each, which includes 1.5 million shares through the exercise of the over-allotment option. The shares were purchased on a bought deal basis by a syndicate of underwriters. In addition, Alamos Gold Inc. exercised its right to maintain its pro-rata interest through a private placement of 1,272,611 shares, taking combined gross proceeds raised by AuRico Metals to C$12,772,611. “The net proceeds from the offering will be used to fund the potential acquisition of additional royalties, the advancement of permitting activities and detailed engineering at the Kemess underground project, as well as for working capital and general corporate purposes,” AuRico Metals says.

By Allen Sykora of Kitco News; asykora@kitco.com