In bracing for an upcoming showdown with a New York hedge fund, Detour Gold has appointed a new mine general manager and restocked its board with considerable talent.
Dale Ekmark has been selected as vice-president, mine general manager of the northeastern Ontario open-pit operation, north of Cochrane.
The 22-year-industry veteran has spent most of his career working at open pits, including overseeing coal mines in the Czech Republic, working in consulting and engineering, while also doing stints with Placer Dome, Cleveland-Cliffs and the De Beers Group of Companies in South Africa.
Added to the board are Alan Edwards, James Gowans and Judy Kirk.
Edwards’ experience as a mining executive spans 35 years with stops at Phelps Dodge, Cyprus Amax Minerals Company, PT Freeport Indonesia, Kinross Gold, and as chairman of AuRico Gold during its recent mergers and acquisitions phase.
Gowans has more than 30 years of experience in exploration, mine feasibility studies, mine construction and commissioning, and the development of best practices in mine safety, operations and economic performance improvements. He’s been in senior management positions with Arizona Mining, Barrick Gold, Debswana Diamond, De Beers, PT Inco Indonesia and Placer Dome.
Kirk is a 30-year specialist in communications, public consultation and engagement in navigating various regulatory and environmental review processes in projects for CN, Teck Resources, Vancouver Fraser Port Authority, the B.C. Ministry of Transportation and Infrastructure, Metlakatla First Nations and Woodfibre LNG.
To make room for the new additions, Ingrid Hibbard and Robert Doyle have resigned.
Activist shareholder John Paulson and Paulson & Co. have engaged in a running battle with Detour Gold management over how the open-pit operation is being run. Paulson wants to replace the entire board with eight nominees of his own.
Paulson wants a special shareholders meeting in September. Detour Gold has scheduled one for Dec.11.
Chair Alex Morrison said the roster changes bring additional experience in operations and corporate social responsibility, which should make the Detour Lake Mine a consistent performer.
"These latest changes demonstrate that our board shares the objective of our shareholders -- to ensure the 2018 Life of Mine Plan succeeds in maximizing the value of our unique asset,” he said in an Aug. 29 statement.
“Not only is Detour Lake the largest gold mining operation in Canada, it has one of the largest gold reserve endowments in the world, providing tremendous optionality to a rising gold price over at least the next two decades.”
Franco-Nevada chairman Pierre Lassonde is encouraged by what he sees.
"From the very beginning, Franco-Nevada has been a stakeholder in Detour Gold through a royalty interest,” he said in the release."Today, Detour Lake is one of the largest gold deposits in Canada with a long mine life. We are pleased to see the progress Detour Gold is making in strengthening its board and management team so that it can achieve its full potential for the benefit of all stakeholders."
