Canadian Gold Mine Buyout Plan Hit Roadblock

SEATTLE (Scrap Monster): The Canadian government has stopped the potential sale of a gold mine in the country to a Chinese company. The government authorities rejected Shandong Gold Mining’s acquisition bid to take over the assets of TMAC Resources, including the Hope Bay Mine in Nunavut.

Earlier in October this year, TMAC Resources had received notice, intimating them of a national security review on the deal by the Canadian government. The recent order dated 18^th December, 2020, issued by the Governor in Council, under the Investment Canada Act, directs Shandong Gold Mining Company to withdraw from its plan to takeover TMAC Resources.

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TMAC Resources issued a news release saying that the sale transaction with Shandong will not proceed and that the two companies are engaged in discussions regarding termination of the transaction. It must be noted that Shandong had agreed to purchase TMAC Resources for a sum of nearly $150 million in May this year. Also, 97% of the TMAC shareholders had voted in favour of the bid.

Jason Neal, president and chief executive officer of TMAC stated that the company is disappointed with the outcome. However, they are pleased with the significant operation improvements at Hope Bay.