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Detour Gold fends off mini-tender offer

Company said offer was unsolicited and cautions shareholders against proposal.
Detour Gold’s Detour Lake Gold Mine

Detour Gold started off the new year fending off a mini-tender offer from TRC Capital to purchase up to five million shares, or 2.86 per cent, of the company.

The company said in a Jan. 4 release it had been offered $15.25 per common share of Detour, but that it did not support the offer.

“Detour Gold does not endorse this unsolicited mini-tender offer and recommends that shareholders do not tender their shares in response to the offer,” the company said in the release.

“Shareholders are cautioned that the mini-tender offer has been made at a price below market, representing a discount of 4.69 per cent to the closing price of Detour Gold's common shares on Dec. 23, 2016, the last trading day before the mini-tender offer was commenced.”

The company emphasized it was not associated with TRC or the mini-offer, and iterated that mini-offers of this kind are “designed to seek less than five per cent of a company's outstanding shares, thereby avoiding many disclosure and procedural requirements applicable to most bids under Canadian securities legislation.”

It also noted that Canadian Securities Administrators (CSA) has noted its concerns about mini-offers, suggesting it could create a misunderstanding about the terms of the offer.

Shareholders who have tendered their shares have until Jan. 27 to withdraw their shares.

Detour Gold's flagship project is the Detour Lake gold mine, located roughly 200 kilometres northeast of Cochrane.