Shandong Gold Reaches Agreement to Buy TMAC Resources

SEATTLE (Scrap Monster):  Shandong Gold Mining- the leading Chinese bullion mining company has reached an agreement to buy Canadian junior miner TMAC Resources for nearly $149 million.

As per the agreement, the Chinese state-controlled firm will acquire all of the outstanding shares of TMAC by paying the above sum of money in cash at C$1.75 per share. This is at a premium of almost 52% when compared with the 20-day volume-weighted average share price. Also, the company has committed to purchase another 12 million shares at the same price in a private placement. The transaction promises secure continued investment in Hope Bay high grade gold mine in Nunavut.Incidentally, the mine had produced 138,510 ounces of gold in 2019. 

This is the latest acquisition of Canadian resources company by Chinese gold firm. Earlier in March this year, Zijin Mining had acquired Continental Gold for a sum of C$1.3 billion.

Jason Neal, president and CEO, TMAC stated that the transaction is the culmination of the strategic review process announced by the company earlier this year. Shandong Gold has the financial strength, technical capability and long-term vision to maximize the value of the Hope Bay camp, he added. Meantime, Chen Yuming, chairman of Shandong Gold Group announced that the company remains committed to make investment to optimize production and extend mine life.

YOU MAY ALSO BE INTERESTED IN:

OceanaGold Resumes Mining and Processing Activities in New Zealand