Paulson & Co. Inc. (“Paulson”), as investment manager of certain investment funds, has requisitioned a Special Meeting of Shareholders of Detour Gold in order to reconstitute its Board of Directors. After much unnecessary delay, the Company has set a meeting date for December 11, 2018.
Paulson is one of Detour Gold’s most significant investors, exercising control or direction over approximately 5.4% of Detour Gold’s shares. Having first invested in the Company nine years ago, Paulson previously provided C$280 million in direct equity and US$250 million in convertible notes to finance its mine completion. Paulson, along with several other major shareholders in the Company, has grown increasingly frustrated by the Company’s inability to appropriately manage shareholders’ assets, having destroyed billions of dollars of value in the process.
Paulson is soliciting shareholder support and, ultimately, intends to solicit forms of proxy and VIFs, in support of:
(1) The removal of certain of the incumbent directors of Detour Gold,
(2) Fixing the number of directors of Detour Gold at eight, and
(3) If any vacancy is created by the foregoing resolutions, the election of each of the Concerned Shareholder Nominees to the board of directors of Detour Gold.
Once Detour Gold has formally called the Special Meeting of Shareholders and issued notice of the meeting together with its Management Circular, Paulson will issue its Final Circular containing further disclosure concerning its proposals, including its vision for Detour Gold and the reasons for seeking support of each of the above resolutions, together with additional details concerning the completion and return of forms of proxy and VIFs to be provided by Paulson for use at the Special Meeting of Shareholders of Detour Gold.