Detour Gold announced that Caterpillar Financial has agreed to underwrite up to US$105 million in mobile fleet equipment financing to fund the acquisition of Cat mining equipment supplied by Toromont Industries Limited.
The financing is a five-year term with the transaction anticipated to close in the first quarter of 2011.
The financing will be used toward the purchase of 23 Cat 795F – 322-tonne haul trucks and ancillary equipment being supplied by Toromont. The company expects the equipment to arrive in mid-2011 and be completed by early 2013.
The company's gold project is located in northeastern Ontario about 180 kilometres north of Cochrane. The past-producing open-pit mine continues to be aggressively explored by Detour as it moves toward mine development.
The company updated its reserve and resource estimate for its Detour Lake gold project to 14.9 million ounces from its previous 11.4 million ounces.
The increase in proven and probable open-pit reserves has extended the mines' life from 16 years to 21 years at mill throughput ranging from 55,000 to 61,000 tonnes per day.
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