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UPDATE: Detour Gold Down 4% As Moves to Consolidate Detour Lake Camp With Acquisition of Trade Winds

Detour Gold Corporation (DGC.TO) and Trade Winds Ventures Inc. (TWD.V) have entered into a definitive agreement pursuant to which Detour Gold will acquire all of the issued and outstanding common shares of Trade Winds, by way of a court approved plan of arrangement, for total consideration of $84 million. A trading halt has been placed on TWD, which last traded at 29 cents.

Under the terms of the Agreement, Trade Winds shareholders will receive 0.0142 of a Detour Gold share and C$0.0001 in cash for each Trade Winds share held. Based on Detour Gold's share price on September 23, 2011, this represents total consideration of C$0.455 per Trade Winds share and a premium of 57% to Trade Winds' closing price on September 23, 2011. Based on the respective 20-day volume weighted average prices of Detour Gold and Trade Winds, as at September 23, 2011, the consideration represents a premium of 61%.

The principal assets of Trade Winds are its interest in the 50/50 joint venture with Detour Gold in respect of the Block A property, located adjacent to Detour Gold's Detour Lake project, and its wholly-owned Gowest property, which is also located in the Detour Lake area.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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