DGC's Detour Lake

DAN ROLLINS, UBS Securities (07/21/2010)
"Detour Gold (DGC) completed its recent equity financing, which saw the company issue 11.75m shares at C$24—raising C$282m (gross proceeds). With C$300m on the books prior to the financing, DGC has ~50% of the forecast funds required to finance the development of its Detour Lake project. With a goal of covering close to half of the C$1.1b project with debt/project financing, we believe the next funding event is likely to be in this form. We expect DGC could be able to obtain around C$125m in fleet financing, as well as other types of traditional debt funding (total estimated at C$350m). In addition to further funding, we expect additional risk-lowering milestones could be achieved within the next six months, including receipt of initial construction permits, finalization of Impact Benefit Agreements with local First Nations and ongoing exploration success along the western boundary of the planned open pit."

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