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Canada’s SRG Mining Inc. is planning on moving to the Middle East in an attempt to skirt a Canadian national security review into a key financing deal with China-based Carbon ONE New Energy Group Co. Ltd.
Last summer, when Montreal-based SRG announced that China’s C-One was buying a 19.4-per-cent stake for $16.9-million, it warned the deal would be scrutinized by Ottawa on national-security grounds. Late in the year, SRG flagged that it was looking at redomiciling the company, and on Monday said in a press release that it plans on relocating to the United Arab Emirates, where it will have “expanded strategic optionality.”
The legal manoeuvre, the company said, removes the requirement for a security probe by the federal government. “They are skirting around it in a bit of a cunning fashion,” said Christopher Ecclestone, principal and mining strategist with London-based Hallgarten & Co. “It doesn’t have a good look to it.” SRG declined an interview request.
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