Chinese company's deal to buy Nunavut gold mine facing national security review

2 months ago 3

Chinese company's deal to buy Nunavut gold mine facing national security review

TMAC Resources Inc., owner of Nunavut's Hope Bay mining project, says the federal cabinet has ordered a national security review of its proposed sale to a Chinese company.

Shandong Gold Mining Co. Ltd. announced deal in May to buy TMAC Resources Inc. for $230 million

The Canadian Press · Posted: Oct 15, 2020 1:32 PM CT | Last Updated: October 15

TMAC Resources' Hope Bay mining project is located 125 kilometres southwest of Cambridge Bay, Nunavut, and about 700 kilometres northeast of Yellowknife. (Submitted by Alex Buchan/TMAC)

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TMAC Resources Inc. says the federal cabinet has ordered a national security review of the proposed sale of the Canadian gold miner to a Chinese company.

Shandong Gold Mining Co. Ltd. announced a deal in May to buy TMAC, owner of the Hope Bay mining project in Nunavut, for $230 million.

The friendly deal has received Chinese regulatory approvals and TMAC shareholders voted in favour of it in June.

The cabinet national security review, under the Investment Canada Act, raises concerns that the deal may not be able to close by a Feb. 8, 2021, deadline to complete the sale.

COVID-19 outbreak at Nunavut's Hope Bay mine at 10 cases but 'contained,' government says

TMAC says it expects the deal to close in the first quarter of 2021 if it is approved.

But it noted Ottawa may not complete the regulatory review process and provide approval by the deadline.

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