Paul­son re­jects set­tle­ment pro­posal from De­tour Gold

The Globe and Mail Metro (Ontario Edition) - - BIRTH AND DEATH NOTICES -

Hedge fund Paul­son & Co. has re­jected pro­pos­als from Toronto-based miner De­tour Gold Corp. which would have re­moved its in­terim chief ex­ec­u­tive of­fi­cer in aid of set­tling a proxy dis­pute over the com­pany’s fu­ture, De­tour said on Fri­day.

The set­tle­ment De­tour said it had pro­posed to Paul­son on Oct. 9 would have re­sulted in al­most half of its board be­ing re­freshed in six weeks, with in­terim CEO Michael Kenyon step­ping down be­fore the next an­nual gen­eral meet­ing.

A spokesman for Paul­son said it had in­stead made new pro­pos­als to De­tour ear­lier on Fri­day and was con­tin­u­ing to press for a com­plete change of the board.

“Paul­son pro­vided the com­pany with two set­tle­ment al­ter­na­tives this morn­ing … we have not re­ceived a re­sponse to our good-faith of­fer other than through the me­dia,” the spokesman told Reuters on Fri­day.

“De­tour’s di­rec­tors could have done the right thing … in­stead, they have opted to pro­long their in­evitable ouster at the hands of share­hold­ers,” the spokesman added.

He gave no de­tails of the new of­fers the hedge fund had made.

The com­pany’s shares, which have fallen nearly 26 per cent this year, fell nearly 2 per cent on Fri­day.

“Our board has de­cided to keep our rea­son­able set­tle­ment of­fer open to Paul­son,” De­tour chair­man Alex Mor­ri­son said.

Paul­son, which has called for the com­pany to ex­plore strate­gic al­ter­na­tives in­clud­ing a sale, in July called for a spe­cial share­hold­ers meet­ing and nom­i­nated eight new di­rec­tors for ap­point­ment to De­tour’s board.

The com­pany in­stead made three new ap­point­ments to its board, which were crit­i­cized by the hedge fund.

Our board has de­cided to keep our rea­son­able set­tle­ment of­fer open to Paul­son. ALEX MOR­RI­SON DE­TOUR CHAIR­MAN

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