The Federal Cabinet of Canada has ordered a national security review of China-based Shandong Gold’s acquisition of TMAC Resources, which owns the Hope Bay property in Nunavut.
TSX-listed TMAC says it believes the transaction has a strong overall net benefit to Canada and that it does not pose a security risk.
Given the extended timelines under the Investment Canada Act, the company now expects the closing of the transaction to occur in the first quarter of 2021. Shareholders have already approved the sale.
Shandong has offered C$230-million for struggling TMAC. The Chinese group has said that it is keen to revitalise Hope Bay.