Detour Gold Announces Amendments to Credit Facility

Press Release

TORONTO, Sept. 25, 2019 – Detour Gold Corporation (TSX: DGC) (“Detour Gold” or the “Company”) announces today that it has executed a third amendment and restatement of its existing credit agreement, to provide for a new US$400 million senior secured revolving credit facility, with an accordion option allowing the Company to increase the size of the facility, subject to customary terms and conditions, by another US$100 million to a total amount of US$500 million (the “Credit Facility”).  The new Credit Facility will be used for financial assurance and general corporate purposes.

The new Credit Facility includes two financial covenants: (i) a “Net Debt to EBITDA” (or “Leverage Ratio”) covenant of 3.5x (unchanged as compared to the previous facility) and (ii) an “Interest Coverage” covenant of 3.0x (reduced from 3.5x under the previous facility).  The interest rate for drawn borrowings ranges from Libor + 2.00% to 3.125% (reduced from Libor + 2.215% to 3.125% under the previous facility), depending on the Leverage Ratio.

The Company plans to pay down US$100 million in indebtedness under the new Credit Facility by the end of Q3 2019, and to fully pay down its indebtedness under the new Credit Facility in the coming months.  This will translate into estimated interest savings of approximately US$9 million per annum (relative to the amount payable under the previous US$200 million term loan) and available liquidity of approximately US$370 million under the new Credit Facility (taking into account issued and outstanding letters of credit under the new Credit Facility).

Mr. Jaco Crouse, the Company’s Chief Financial Officer, commented: “The new Credit Facility is representative of our strong cash flow generation and growing net cash position. It delivers not only lower costs, but also increased flexibility and enables us to look at broader capital allocation decisions.  Despite investing US$56 million year-to-date in the construction of Cell 2 of our long-term Tailings Management Facility, the Company expects to have approximately US$26 million in net cash* at the end of Q3 2019.  We continue to focus on reducing operating costs, working capital requirements and waste stripping over the coming periods.”

The Co-Lead Arrangers and Joint Bookrunners are BMO Capital Markets, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia, Royal Bank of Canada and TD Securities.  Bank of Montreal is the Administrative Agent.

About Detour Gold

Detour Gold is a mid-tier gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation. Detour Gold’s shares trade on the Toronto Stock Exchange under the trading symbol DGC.

For further information, please contact:

Detour Gold Corporation, Commerce Court West, 199 Bay Street, Suite 4100, P.O. Box 121, Toronto, Ontario M5L 1E2.

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