Paulson & Co. Provides Update on Detour Gold Corporation
Detour Gold Corporation (TSX:DGC)
Today : Wednesday 18 July 2018
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Paulson & Co. Inc. ("Paulson"), one of the largest institutional investors in Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company"), announced today that it will move forward with its efforts to replace a majority of the Detour Gold Board of Directors with new highly qualified, independent nominees committed to exploring all strategic alternatives including a potential sale of the Company.
Last Friday Michael Kenyon, Interim CEO of Detour Gold, sent an unsolicited written communication to Paulson selectively disclosing non-public information that the Company has been approached by a major gold mining company interested in potentially acquiring it. As part of the communication, Detour Gold stated it would only sign a confidentiality agreement with the interested party only if both the party and Paulson agreed to a stand-still, even though Paulson has no affiliation with the major mining company. In light of such approach, Paulson requested that the Company’s board immediately disclose such material to all shareholders and the investing public and announce a formal process to evaluate all strategic opportunities. In addition, Paulson & Co. has constructively asked the independent directors of the board to reconstitute the board and to announce a search process for a new CEO simultaneous with a review of strategic alternatives. To date, the Detour Gold board has failed to do so, therefore Paulson is issuing this press release so that all Company shareholders and the wider public have the same information as Paulson.
