Shandong Gold Mining had proposed to pay about $230 million not including debt to purchase TMAC Resources
Canada has blocked a Chinese state-owned mining company from purchasing a gold mine in Nunavut on national security grounds, signalling a new escalation of already high tensions between the two countries.
Under the now terminated deal, Shanghai-listed Shandong Gold Mining Co. Ltd. had proposed to pay about $230 million not including debt to purchase Toronto-based TMAC Resources Inc., which in 2018 developed a gold mine in Hope Bay, Nunavut.
A spokesperson for Innovation, Science and Economic Development Canada declined to answer questions about why the deal was blocked, but provided a statement noting that all foreign investments are subject to review under the Investment Canada Act.
“Reviews are conducted on a case-by-case basis as part of a rigorous and evidence-based process,” the statement read. “Due to the confidentiality provisions of the Investment Canada Act, the government cannot comment further.”
TMAC, which had been searching for a buyer who could invest hundreds of millions of dollars to overcome amid operational challenges, and is carrying growing debt, now faces an uncertain future.
For the rest of this article: https://financialpost.com/commodities/mining/canada-blocks-china-shandong-gold-mining-buying-tmac