Detour Gold raises securities law concerns over Paulson and Co. statements

The mining company says it notified the Ontario Securities Commission of alleged “concerning and unlawful behaviour” by Paulson and Co., which it says is meant to pressure the board into a quick sale of the company. (Photo: Detour Gold/Facebook)

TORONTO — Detour Gold Corp. says it has raised concerns with securities regulators about statements by a U.S. hedge fund.

The mining company says it notified the Ontario Securities Commission of alleged “concerning and unlawful behaviour” by Paulson and Co., which it says is meant to pressure the board into a quick sale of the company.

Paulson and Co. had earlier released a statement saying it had been informed that Detour Gold had been approached by a major gold mining company interested in potentially acquiring it.

The investment firm says it will go ahead with efforts to try and replace the board of directors at Detour because of the company’s approach to the matter.

Detour Gold says Paulson and Co.’s statements are false and misleading, and it does not have a sale process in place nor has it received offers to purchase its shares.

Detour’s share price closed up $1.45 or 11.84 per cent to $13.70 after Paulson issued the statement about a potential offer.