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Detour Gold extends voting deadline to shape company’s future

Preliminary results show shareholders want board change
Detour Gold dump truck

Detour Gold shareholders will have an extra two days to cast their vote on the future of the company.

On Dec. 10, the company issued a statement saying it was extending the deadline on an upcoming vote that would determine the compilation of its board of directors.

An original meeting date was set for Tuesday, Dec. 11, but has now been extended to Thursday, Dec. 13.

The company said the move is a response to early voting results, which are in favour of a wholesale change of the board of directors.

Detour said it was concerned those results suggest “an outcome not intended by a majority of Detour Gold’s shareholders.”

"Preliminary voting results indicate that vote dispersion, coupled with a significant shareholding bloc having voted with Paulson & Co., will lead to a change of control of Detour Gold's board of directors,” board member James Gowans said in the statement.

“This result would be inconsistent with the intentions expressed to Detour Gold by the vast majority of shareholders we have spoken with. Briefly postponing the meeting gives shareholders an opportunity to make an informed choice.”

Gowans said shareholders who have already voted and are concerned about a change in board control can recast their vote if they choose to, but, ultimately, shareholders’ wishes would be respected.

"Our goal is simply to be transparent and provide the information needed to make an informed vote," he said.

Investment firm Paulson, one of Detour Gold's largest shareholders, responded by calling the extension a "desperate and transparent attempt to manipulate the results."

It accused Detour's board of misleading shareholders by releasing information selectively in an attempt to scare them into changing their votes.

"The fundamental result of this election is that shareholders have voted for change and the entrenched directors do not respect this result," Paulson said in a statement.

"Paulson calls on Detour Gold to immediately release the voting results and for the entrenched directors to respect them.”

Paulson is pushing to have the entire board replaced with its own nominees, claiming Detour has been mismanaged and requires new leadership in order for Detour to turn its fortunes around. Meanwhile, Detour has accused Paulson of moving toward a fire sale of the company.

Detour Gold owns and operates the Detour Lake open-pit gold mine, located north of Timmins.