Goldcorp and Agnico Eagle will be buyers???Detour Lake project is perhaps Canada's largest undeveloped gold deposit. M+I = 10.8 million oz
https://www.detourgold.com/s/Home.asp
Goldcorp and Agnico Eagle, both with a strong regional presence in the Abitibi greenstone belt, could ultimately take a run at DGC. The merger between Detour Gold and PDX now opens the door.
Detour Gold and PDX Resources Agree to Merger
1/26/2009 8:12:05 AM - Market Wire
TORONTO, ONTARIO, Jan 26, 2009 (MARKET WIRE via COMTEX News Network) --
Detour Gold Corporation (TSX: DGC) ("Detour Gold") and PDX Resources Inc. (TSX: PLG) ("PDX") are pleased to announce they have entered into an agreement providing for the merger of the companies. PDX is Detour Gold's largest shareholder, and the 19 million common shares of Detour Gold that it holds represent an approximately 42% interest in Detour Gold.
Summary of the Transaction
Pursuant to the transaction, each PDX share will be exchanged for 0.2571 of a common share of Detour Gold, representing a value of $2.12 per PDX share based upon the closing price of Detour Gold shares on the TSX on January 23, 2009. The value accorded each PDX share is 28% over the closing price of the PDX Shares on January 23, 2009 and 31% over the 20-day volume weighted average trading price of the PDX Shares on the TSX as at the same date.
Pursuant to the transaction, a total of 19 million common shares of Detour Gold will be issued to PDX Shareholders. PDX will become a wholly-owned subsidiary of Detour Gold and the shares of Detour Gold currently held by PDX will be cancelled. As a result, the transaction will have no material impact on the capitalization of Detour Gold. Detour Gold shareholders will continue to hold their existing Detour Gold shares.
Benefits of the Transaction
The proposed transaction offers a number of benefits to the shareholders of both PDX and Detour Gold, including the following:
- a simplified ownership structure and a larger public float which
should facilitate a broader base of institutional investors and
greater liquidity in the Detour Gold shares;
- for shareholders of PDX:
- the elimination of the significant discount in the trading price
of the PDX shares relative to the market value of PDX's interest in
Detour; and
- direct exposure to the potential of the Detour Lake project, one of the
world's largest undeveloped gold resources;
- for shareholders of Detour Gold:
- the elimination of the overhang created in the Detour Gold shares
by PDX's significant ownership block; and
- the addition of further experience to Detour Gold's board of directors,
whose combined expertise and proven track record will be invaluable in
moving the Detour Lake project forward.