Canadian miner Detour Gold on Monday announced that its COO, Frazer Bourchier, and its VP for investor relations, Laurie Gaborit, had resigned their positions and that they would leave the company at the end of the month.
The resignations would cost the gold mining company about C$4.5-million and it would be dealt with as a one-off charge in the second quarter.
The miner explained that it had an agreement with Bourchier, whereby he was offered certain incentives to remain in his position until June 30. Among other things, Detour offered Bourchier the option to resign for "good reason", and to receive the immediate payment of all monies owning to him under his employment contract.
Gaborit also entered into an agreement with the company that extended her option to resign following the deemed “change of control” of the company in December, and to receive the immediate payment of all monies owing to her under her employment contract.
Hedgefund billionaire John Paulson’s Paulson & Co in December convinced the shareholders of Detour to overthrow the bulk of the miner’s board and to appoint five nominees as replacements in the nine-member board. James Gowans was appointed chairperson following the proxy battle, but he resigned in March and was succeeded earlier this month by Patrice Merrin.
The company also has a new CEO following the proxy battle, with former Stillwater Mining Company CEO Mick McMullen taking the reins and it confirmed on Monday that Jaco Crouse was its new CFO.
Detour stated that it did not plan to fill the COO position at this time.
It also noted that it had made other management restructurings that would represent a saving of about C$4-million a year going forward.
"We are moving forward at Detour Gold with our new board, a rejuvenated executive team and a renewed focus on driving efficiencies and running the company as a profitable business,” said McMullen.
Detour owns the Detour Lake mine, in Ontario. The company reported last month that the mine had its “best performing first quarter” in the first three months of this year, since the start of operations six years ago.
The company aims to produce 570 000 oz to 605 000 oz at a total cash cost of $790/oz to $840/oz and an all-in sustaining cost of $1 175/oz to $1 250/oz in 2019.