* Says underwriters to buy $250 mln worth convertible notes
* Says Paulson & Co to buy $175 mln worth of these notes
* Paulson & Co will also buy $75 mln of cash settled notes
* Paulson & Co had 12.4 pct stake in Detour as on April 21
* Shares down 4 pct
Nov 17 (Reuters) - Detour Gold Corp said it would raise half of its $500 million offering in a bought deal and will use the proceeds for development of its Detour Lake gold project in north-eastern Ontario.
The Toronto-based gold miner said underwriters, led by BMO Capital Markets, will buy $250 million of 5.50 percent senior unsecured convertible notes.
Detour also said Paulson & Co Inc, which had a 12.4 percent stake in the company as on April 21, will buy $175 million worth of these notes and $75 million worth of cash settled notes.
Paulson & Co will, however, convert the notes to cash instead of common shares, Detour said in a statement.
The notes and cash settled notes, which will mature on Nov. 30, 2017, can be converted into common shares at a conversion price of $38.50 per share, Detour Gold said.
The Detour Lake deposit is Canada's largest pure gold play with reserves of 11.4 million ounces, according to Detour Gold website. This is about 30 percent higher than its October 2009 estimate of 8.8 million ounces.
The offering is expected to close on Dec 1, the company added.
Detour shares, which have more than doubled in value in the past one year, were down 4 percent at C$29.02 on Wednesday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore) Keywords: DETOURGOLD/ (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says Paulson & Co to buy $175 mln worth of these notes
* Paulson & Co will also buy $75 mln of cash settled notes
* Paulson & Co had 12.4 pct stake in Detour as on April 21
* Shares down 4 pct
Nov 17 (Reuters) - Detour Gold Corp said it would raise half of its $500 million offering in a bought deal and will use the proceeds for development of its Detour Lake gold project in north-eastern Ontario.
The Toronto-based gold miner said underwriters, led by BMO Capital Markets, will buy $250 million of 5.50 percent senior unsecured convertible notes.
Detour also said Paulson & Co Inc, which had a 12.4 percent stake in the company as on April 21, will buy $175 million worth of these notes and $75 million worth of cash settled notes.
Paulson & Co will, however, convert the notes to cash instead of common shares, Detour said in a statement.
The notes and cash settled notes, which will mature on Nov. 30, 2017, can be converted into common shares at a conversion price of $38.50 per share, Detour Gold said.
The Detour Lake deposit is Canada's largest pure gold play with reserves of 11.4 million ounces, according to Detour Gold website. This is about 30 percent higher than its October 2009 estimate of 8.8 million ounces.
The offering is expected to close on Dec 1, the company added.
Detour shares, which have more than doubled in value in the past one year, were down 4 percent at C$29.02 on Wednesday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore) Keywords: DETOURGOLD/ (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.