Morganti Legal, P.C., announces that investors have filed a shareholder
lawsuit against Detour Gold Corporation (“Detour Gold” or the “Company”)
(TSX:DGC) for publishing press releases containing alleged
misrepresentations and failing to disclose Material Facts about its
business operations between April 9, 2013 and November 7, 2013.
The investors’ mining experts have been examining Detour Gold’s
disclosures since the Company published its 2014 updated mine production
plan for the Detour Lake gold mine. The shareholder lawsuit was filed on
May 12, 2014. The lawsuit alleges that the Defendants breached s. 75, s.
138.3(1) and s. 138.3(4) of the Ontario Securities Act.
On April 9, 2013, Detour Gold announced that it was reducing its 2013
production guidance to 350,000 ounces from its previous target of up to
400,000 ounces with a cash cost of $800 to $900 per ounce. Detour Gold
also represented that it would be able to ramp-up its mill to 55,000 TPD
by the end of its second quarter. On November 7, 2013, Detour Gold
published a Material Change report announcing that it would reduce its
production guidance down to 240,000 - 260,000 ounces, that its mill
operations of achieving 55,000 TPD were 12-months behind schedule among
other operational disappointments, and its cash costs would average
$1,100/oz. Following this announcement, shares of Detour Gold materially
dropped from $8.12 to $4.43 within ten-days, and the Company’s chief
operating officer resigned.
Investors who purchased Detour Gold's securities between April 9, 2013
and November 6, 2013, and sold all or some of those securities prior to
December 23, 2013, are encouraged to stay informed. You may contact us
toll-free at (888) 226-0845 or by email at email@example.com
to request a copy of the lawsuit and the expert report supporting the
allegations that Detour Gold’s press releases and prospectus contained
discrepancies or misleading statements of Material Fact when compared to
its subsequent disclosures filed on SEDAR.
Morganti Legal, P.C. is a law firm that investigates, litigates and
resolves economic and financial disputes.
You may learn more about Morganti Legal, P.C., at www.morgantilegal.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Morganti Legal, P.C.
Andrew Morganti, 888-226-0845
Source: Morganti Legal, P.C.