https://www.theglobeandmail.com/
SRG Mining Inc. has called off its financing deal with a privately held Chinese company, after Canada’s Industry Minister publicly chastised the miner for trying to skirt a national security review related to the agreement.
Last summer, China-based Carbon One New Energy Group Co. Ltd., also known as C-One, proposed buying a 19.4-per-cent stake in SRG’s Lola graphite project in West Africa for $16.9-million. For the first few months after the deal was announced, Montreal-based SRG told its investors that the deal was subject to a national-security review by the Canadian federal government.
SRG eventually announced that it was planning on redomiciling in the Middle East, a legal manoeuvre it said would negate the requirement for the security review.
“It’s never smart to try to circumvent the rules,” Minister of Innovation, Science and Industry François-Philippe Champagne told The Globe and Mail on Monday. The federal government is prepared to use “every tool at our disposal” to make sure Canadian law is respected, he added.
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