Canada extends review of Shandong’s TMAC buy

Hope Bay mine, Nunavut, Canada. (Image courtesy of TMAC Resources.)

Shandong Gold Mining said on Friday it had been notified by Canadian authorities that they would extend a security review into the company’s bid to acquire TMAC Resources by at least 45 days.

The Chinese-based company agreed to buy TMAC for around $149 million in May.

TMAC Resources, which operates the Hope Bay property in Nunavut, said in October it expected the transaction to close by the end of Q1 2021.

The miner owns the Doris gold mine, the only operating asset in Hope Bay. The mine began commercial production in 2017 and had proven and probable mineral reserves totalling around 3.54 million ounces of gold at the end of 2019, according to the company’s website.

The miner is in the early stages of developing a second underground mine at Hope Bay — Madrid North. It has also concluded a prefeasibility study on a production expansion at the Hope Bay property.

TMAC’s biggest shareholders include Newmont, and Resource Capital Funds.

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