Paulson & Co. says Detour Gold Corp. has been approached by a “major mining company” interested in buying it.
New York-based Paulson, which owns about 5.5 per cent of Detour, is also pressing ahead with its efforts to push for a rehaul of Detour Gold’s board of directors, with the ultimate objective of putting the struggling junior up for sale.
In a press release on Wednesday, Paulson said that Detour’s chief executive officer, Michael Kenyon wrote to the firm and informed it that the junior miner had been approached by a potential acquirer, but that Detour would only sign a confidentiality agreement, if both the company and Paulson, agreed not to push for a rehaul of the board of directors. Paulson said it has no connection with the company in question.
Shares in Detour were up by 12.6 per cent in the late afternoon trading session on the Toronto Stock Exchange.
Last week, Paulson said it was considering forcing a shareholder vote to replace Detour’s existing board after the junior gold producer said its best option was pushing ahead with a costly mine expansion rather than putting the company up for sale.