Move comes after review under the Investment Canada Act
A $230 million deal for a Chinese company to purchase a gold mine project in Nunavut is off. TMAC Resources Inc. made the announcement in a news release posted to its website Monday.
The company states that the Government of Canada rejected the proposal to sell all TMAC Resources shares and its Hope Bay gold mining project to Shandong Gold Mining Co. Ltd. The deal was approved by 97 per cent of TMAC shareholders on June 26.
The deal, according to TMAC president and CEO Jason Neal, “did not receive Canadian regulatory approval and will not proceed.”
Shandong Gold Mining is a state-owned Chinese gold mining company. The deal was subject to a national security review of investments under the Investment Canada Act.
No one from the Investment Review Division of Innovation, Science and Economic Development Canada — the federal department responsible for the Investment Canada Act — was immediately available for comment.