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Detour, Paulson bury the hatchet

Canadian miner Detour Gold and New York-based investment fund manager Paulson & Co have agreed to dismiss court action the mining company launched in July last year.
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Better times ahead, perhaps, as Detour, Paulson settle outstanding proxy fight items

Staff Reporter

As part of the agreement, both companies will provide releases of certain claims regarding the proxy contest, complaints made by Detour to staff of the Ontario Securities Commission, the court action and Paulson's claim for reimbursement of costs.

"We are happy to settle the last remaining item from the proxy contest, which allows Detour's board to focus on creating value for shareholders," said billionaire Paulson & Co founder John Paulson.

"With this settlement, the board has put the proxy fight behind us and is focused on improving the performance and value of our long-life valuable asset," said Detour chairman James Gowans late Monday afternoon.

Paulson had in July requested Detour call a special shareholder meeting and put forward its own slate of eight nominees for appointment to Detour's board. Instead, Detour appointed three new directors.

Paulson, which owns about 5.7% of Detour and its flagship Detour Lake mine, in Ontario, charged that the failed negotiations had demonstrated that even with three new directors on the board, they were still not inclined to act in the best interests of the company.

In December, Paulson & Co convinced Detour shareholders to replace most of the miner's board and five Paulson-backed nominees were chosen installed in the nine-member board.

Shareholders backed nominee Bill Williams to take over as interim CEO of Detour, replacing Michael Kenyon. Gowans replaced Alex Morrison as Detour chairman.