The battle for one of Canada’s largest gold mines flares up anew – by Gabriel Friedland (Financial Post – October 13, 2018)

https://business.financialpost.com/

Fresh blows landed Friday in the battle for control of Detour Gold Inc. — which operates one of the largest gold mines in Canada — with the company’s current board and hedge fund Paulson & Co., each accusing the other of rejecting settlement offers.

The first salvo came from Detour which issued a press release with details of a settlement offer that it said Paulson & Co., the New York hedge fund run by U.S. billionaire John Paulson, rejected.

By midday, Paulson & Co.’s partner Marcelo Kim offered a different version of events: His firm had countered the settlement offer with its own offer on Friday morning, and Detour’s chairman Alex Morrison had said he would present it to the board for consideration over the weekend.

Instead, Kim said, Detour released a press release on Friday morning accusing him of rejecting all settlement negotiations.

The fight erupted in the summer after Paulson demanded a change in board, based on what it characterized as years of poor performance by Detour — the company has lost $4 billion in market capitalization since 2016, according to Paulson. The company stock was trading down 1.25 per cent to $11.07 on Friday, with a market cap of around $1.93 billion.

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