Nunavut's Hope Bay gold project sold to Toronto firm

Toronto-based TMAC Resources announced this week it finalized the purchase of the Hope Bay gold project in Nunavut with Newmont Mining Corp. (TSX: NMC; NYSE: NEM), reports the Nunatsiaq News.

The privately-held company also closed the deal on $50 million in financing to re-start operations at the mine, which is located near Cambridge Bay.

The Hope Bay project is believed to contain about nine million ounces of gold.

In an interview with CBC News, TMAC's president said the plan is to open a mine by 2015, although the firm would first need to do an IPO and raise more capital.

After spending millions of dollars, Newmont stopped development and exploration on the project last year due to not having enough working capital. Following the sale, it will continue to be a major shareholder in the project.

Hope Bay, Nunavut map

Map: Infomine.com

Front page image: City Escapes Nature Photography / Shutterstock