Ottawa rejects bid by China s Shandong Gold for Canadian miner TMAC Resources over security concerns theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Publishing date: Dec 22, 2020 • December 22, 2020 • 2 minute read •
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The Canadian government has rejected Shandong Gold Mining’s bid to acquire Canada’s debt-saddled TMAC Resources, the companies said, with the Chinese miner adding that the sale was blocked on national security grounds.
As the COVID-19 pandemic has caused economic dislocation, countries from Australia to Canada have increased scrutiny on deals by state-run Chinese miners this year.
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In a filing to the Shanghai Stock Exchange on Tuesday, Shandong Gold , one of China’s biggest gold miners, said it had received notice of a decision by Canadian authorities on Dec. 18 that it should not proceed with the deal.
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(Reuters) -Canada rejected Shandong Gold Mining’s bid for indebted TMAC Resources, the companies said, amid concerns about a Chinese state-owned entity operating in the country’s sensitive Arctic region.
FILE PHOTO: Gold nuggets are displayed at a booth of 18526 Yukon Inc at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 1, 2020. REUTERS/Chris Helgren/File Photo
Canada and Australia have increased scrutiny on deals by state-run Chinese miners this year amid economic dislocation caused by the coronavirus pandemic.
Ottawa’s decision could further strain Canadian-Chinese relations, already damaged by Canada’s December 2018 arrest of Huawei Technologies Co Ltd Chief Financial Officer Meng Wanzhou at the request of the United States.
Winnipeg Free Press By: Dan Healing, The Canadian Press Posted:
Last Modified: 5:33 PM CST Tuesday, Dec. 22, 2020
CALGARY - The CEO of TMAC Resources Inc. says there s a silver lining to news that Ottawa will not allow the sale of his mining company to China s Shandong Gold Mining Co. Ltd.
CALGARY - The CEO of TMAC Resources Inc. says there s a silver lining to news that Ottawa will not allow the sale of his mining company to China s Shandong Gold Mining Co. Ltd.
The company announced Tuesday it had been informed the $230-million sale of TMAC, whose main asset is a gold mining project at remote Hope Bay in Nunavut, would be blocked following a review under the Investment Canada Act.
Ottawa Rejects Chinese Company’s Takeover of Nunavut Gold Mine Over Security Concerns
The federal government has rejected a Chinese state-controlled mining company’s planned takeover of Canada’s TMAC Resources, after conducting a review of the potential security risks.
Toronto-based TMAC Resources Inc. says Ottawa has turned down its deal to be bought by China’s Shandong Gold Mining Co. Ltd. following a review under the Investment Canada Act.
TMAC says the deal will now not go ahead and it is in talks with Shandong regarding termination of the transaction. Shares in TMAC fell Tuesday morning after the company announced Ottawa had blocked the sale, down 15 cents at $1.15 in late-morning trading after falling as low as $1.05 earlier in the day.