ISS urges shareholders to support Detour Gold's director nominees; notes that Paulson has failed to articulate a detailed go-forward plan
ISS recommendation builds on support, in writing, of one of Detour Gold's largest shareholders
Shareholders are encouraged to vote their BLUE proxy or Voting Instruction Form in favour of Detour Gold's recommended Board before December 7, 10:00 a.m. (EST)
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TORONTO, Dec. 3, 2018 /CNW/ - Detour Gold Corporation (TSX: DGC) ("Detour Gold" or the "Company") is pleased to announce that Institutional Shareholder Services Inc. ("ISS"), a leading independent proxy advisory firm, has recommended that Detour Gold shareholders vote in favour of the Company's recommended refreshed board of directors (the "Board") at the upcoming special meeting of shareholders (the "Meeting") on December 11, 2018 noting the Board has responded to shareholder concerns.
In its commentary about Paulson & Co.'s ("Paulson") slate of directors, ISS notes that the "dissident has failed to make a compelling case for board control and has failed to articulate a detailed go-forward plan."
ISS advises: "Shareholders are advised to use the management (BLUE) card to cast their votes in support of the management slate, which includes the removal of two incumbent directors and the election of two dissident nominees."
Welcoming the favourable recommendation, Alex Morrison, Chairman stated: "We are pleased that ISS has joined a growing number of shareholders – including a large shareholder in writing – in recognizing the changes we have made and supporting our choices. Of significant importance is that ISS has acknowledged the role Michael Kenyon has to play in providing continuity in the coming months while a new CEO is recruited. Specifically, the proxy advisor has recognized the positive changes we've made including a new operational team at Detour Lake, the execution of the 2018 Life of Mine Plan to date, and a refreshed recommended board of directors – half of whom were not directors prior to August 2018.
"We have a plan and it's working as evidenced by our year to date operational results. We have always acted in the best interests of our shareholders and responded to their feedback as evidenced by the inclusion of two of Paulson's nominees in our recommended slate. We understand that we have a lot of work ahead of us and look forward to working with Paulson once this proxy contest is over to build value for all shareholders. I am confident that together we can achieve this."
The report refutes Paulson's misinformation about Detour Gold's director and management compensation, noting that "director compensation and director equity ownership has been in line with its peer group."
In addition, ISS disagrees with Paulson's idea to install William C. Williams as an interim CEO: "As both parties to the contest intend to search for a new CEO - and given interim CEO Kenyon's stated commitment to resign as soon as a new CEO is hired or before the next AGM - the replacement of the interim CEO at this juncture might not be as critical, and could introduce potential delays in the CEO search process."
PROTECT YOUR INVESTMENT – VOTE YOUR BLUE PROXY TO ENSURE THE COMPANY STAYS ON TRACK
Vote your BLUE proxy early to ensure it will be counted. Don't wait until the voting deadline on Friday, December 7, 2018 at 10:00 a.m. (Toronto time).
Becoming a voter is fast and easy. To support the current Board, vote only your BLUE proxy or Voter Information Form and follow the instructions below:
FOR The removal of Lisa Colnett & Jonathan Rubenstein; AGAINST The removal of the other six (6) Detour Gold's incumbent directors; AGAINST Fixing the number of directors at eight (8); FOR The election of Steven Feldman & Christopher Robison; and WITHHOLD on the other six (6) Dissident Nominees.
Advisors The Company has retained Kingsdale Advisors as its strategic shareholder and communications advisor, BMO Capital Markets as its financial advisor, and McCarthy Tétrault LLP and Norton Rose Fulbright LLP as its legal advisors.
About Detour Gold Detour Gold is an intermediate 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.