TORONTO (miningweekly.com) – Detour Gold, developing a mine in Northern Ontario, has secured an additional $40-million funding agreement with Caterpillar Financial to buy yellow machinery from the US manufacturer.

This follows an agreement earlier this year for a $105-million equipment financing with Caterpillar Financial.

TSX-listed Detour said the $40-million funding deal would close by the end of next month.

Earlier in August, the company announced it had raised C$428-million to fund the construction of the Detour Lake gold project, located near the town of Cochrane, which is set to start producing in early 2013.

Output is set to average at 649 000 oz/y at cash cost of $437/oz, according to a presentation on Detour’s website.

Preproduction capital has been pegged at $1.3-billion, and as at June 30, the company had committed C$815.3-million towards the project and already spent $275.8-million.

Detour has raised over $1.3-billion since it debuted on the TSX in 2007.

Shares in the firm edged 1.3% higher on Tuesday to close at C$31.69 apiece, giving it a C$3.3-billion market capitalisation.
 

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