The company behind an ongoing gold project in Nunavut’s Kitikmeot region, is all set to be sold to a Chinese mining company. TMAC Resources owns the Hope Bay gold mine project, located 125 kilometres southwest of Cambridge Bay.
On May 8, the company announced a “definitive agreement” to sell to Shandong Gold Mining, a state-owned Chinese mining company, for around $230 million.
The deal values TMAC at $1.75 per share — a 52 per cent premium on the share’s average price, according to the announcement, and about 30 cents more per share than its listed price before the announcement.
The sale must be approved by two-thirds of the company’s shareholders. TMAC is also hoping to get the approval of the Kitikmeot Inuit Association (KIA), the land claim organization representing the region’s Inuit, which owns one per cent of shares.
Though a statement accompanying the announcement voiced tentative support for the agreement, it also made clear the organization hasn’t decided yet if it will support the sale.
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