Detour Gold Responds to Mini-Tender Offer by TRC Capital
TORONTO, ONTARIO--(Marketwired - Jan. 4, 2017) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") has been notified of an unsolicited mini-tender offer made by TRC Capital Corporation ("TRC Capital") to purchase up to 5,000,000 Detour Gold common shares, or approximately 2.86 percent of the Company's outstanding common shares, at a price of Cdn$15.25 per share. Detour Gold does not endorse this unsolicited mini-tender offer and recommends that shareholders do not tender their shares in response to the offer.
Shareholders are cautioned that the mini-tender offer has been made at a price below market, representing a discount of 4.69 percent to the closing price of Detour Gold's common shares on December 23, 2016, the last trading day before the mini-tender offer was commenced.
The Company does not endorse TRC Capital's unsolicited mini-tender offer and is not associated with TRC Capital, the mini-tender offer, or the mini-tender offer documentation.
TRC Capital has made similar unsolicited mini-tender offers for shares of other public companies. Mini-tender offers are designed to seek less than five percent of a company's outstanding shares, thereby avoiding many disclosure and procedural requirements applicable to most bids under Canadian securities legislation. The Canadian Securities Administrators ("CSA") have expressed serious concerns about mini-tender offers such as the possibility that investors might tender to a mini-tender offer based upon a misunderstanding of the terms of the offer, including the per securities price available under the offer relative to the market price of such securities. Comments from the CSA on mini-tenders can be found on the Ontario Securities Commission website at: http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_19991210_61-301.jsp.
According to TRC Capital's offer documents, Detour Gold shareholders who have already tendered their shares may withdraw their shares at any time before 12:01 am (Toronto time) on January 27, 2017 by following the procedures described in the offer documents.
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's shares trade on the Toronto Stock Exchange under the trading symbol DGC.