A new US$400 million senior secured revolving credit facility will replace a $500 million senior secured credit facility comprised of a $200 million term loan maturing in July 2020 and a $300 million revolving credit facility. At the end of the second quarter, Detour had debt of $199.7 million.

Under the new revolver, Detour will pay interest on drawn borrowings from Libor +2% to 3.125% compared to Libor +2.215% to 3.125% under the previous facility.

"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," said CFO Jaco Crouse.

Detour plans to pay down $100 million of debt by the end of the third quarter and fully pay down its indebtedness in the coming months, which will leave it with about $370 million in available liquidity under the new revolver, which matures in September 2023. The revolver has an accordion option allowing Detour to increase it by another $100 million to a total of $500 million.

The debt repayment will result in estimated interest savings of about $9 million per annum compared to the terms of the $200 million term loan.

The new facility maintains net debt to EBITDA leverage ratio covenant at 3.5x but reduces the interest coverage covenant to 3.0x from 3.5x.

Shares in Detour Gold are trading at C$21.81, valuing the company at $3.8 billion.