After a six-month duel between a New York hedge fund and a struggling Canadian miner, early results in Detour Gold Corp.’s proxy contest point to a partial victory for dissenting shareholder Paulson & Co. Inc.
The Toronto-based gold company said five of nine current directors have been ousted, according to a preliminary vote count.
Interim chief executive Michael Kenyon was among the incumbents voted off the board, Detour spokesman Ian Robertson said. Last week, Mr. Kenyon said if he lost his board seat he would also immediately step down as CEO. Mr. Robertson declined to identify any of the other directors who have been voted off.
The development is a blow for Detour, which had recommended replacing only two incumbents, and a win for Paulson, which had pushed for the removal of eight directors, including Mr. Kenyon. The initial results point to a new slate of directors, most nominated by the hedge fund.
Paulson’s proxy push came not long after shares in Detour lost 30 per cent of their value in a single session following the company’s announcement that the expansion of its Detour Lake gold mine in Northern Ontario would cost significantly more than expected. Paulson has repeatedly said Detour’s board is more concerned with looking after its own interests than those of shareholders.