Detour Gold confirms former CFO Paul Martin as new chief executive, director

TORONTO - Detour Gold Corp. (TSX:DGC) has confirmed its chief financial officer as the permanent replacement for Gerald Panneton, who resigned as president and chief executive in November.

Paul Martin had filled the job on an interim basis as the company searched for a new CEO just months after its mine in northeastern Ontario began commercial production in August.

With Martin becoming CEO and a director of the company, Detour said James Mavor will become chief financial officer. Mavor was vice-president of finance prior to being named interim CFO in November.

The company announced Tuesday that it has signed a deal to raise $150 million in an offering of shares.

Under the bought-deal agreement, the company said underwriters will buy 16.22 million shares at $9.25 per share.

The underwriters have also been granted an option for up to an additional 2.433 million shares under the same terms that, if fully exercised, could raise an additional $22.5 million.

Detour Gold's shares have been among the most heavily traded on the Toronto Stock Exchange since the management change was announced Nov. 25

The stock closed up three cents at $9.92 on the Toronto Stock Exchange on Tuesday and are up from $4.27 before the announcement of Panneton's departure.

Detour was hit in December by an unexpectedly long shutdown in at its Detour Lake open pit mine.

As a result, of the shutdown, the company produced 232,387 ounces last year, below the 240,000 ounces at the lower end of its guidance.

It subsequently issued guidance for 2014, its second year of production, which called for output to rise to between 450,000 and 500,000 ounces.

The company's latest estimate says the mine has an operating life of about 22 years.

It also announced a six-year, fixed-rate electricity contract with the Ontario Power Authority that will help lower Detour's estimated cash cost this year to between US$800 and US$900 per ounce of gold sold.