Ottawa adds 45 days to national security review of TMAC-SD Gold sale
“This was very much expected”
Canada’s national security review for the sale of TMAC Resources Inc. to Shandong Gold Mining Co. Ltd. has received an extension of up to 45 days, the company said Friday, Nov. 27.
In October, the federal cabinet ordered a national security review of the proposed sale of TMAC, which owns the Hope Bay gold mine in western Nunavut, to the Chinese state-owned SD Gold.
Jason Neal, TMAC’s president and CEO, told Nunatsiaq News that the federal government had 45 days for full national security review and then could seek a further 45 days.
“So this was very much expected,” Neal said.
The two companies want to seal the proposed sale, first announced in May, by Feb. 8, 2021.
“Feb. 8 is outside date of arrangement agreement and has not changed,” Neal said.
Under the Investment Canada Act, the federal government has been looking at whether the deal with SD Gold is likely to increase employment in Canada, as well as its economic and other impacts.
The act also allows Ottawa to review a transaction for national security reasons.
Other hurdles to the proposed purchase have been cleared. In June, TMAC received a final order from the Ontario Superior Court of Justice approving the sale to SD Gold.
But until the government completes the federal review, the sale, approved by 97 per cent of TMAC’s shareholders at a special meeting held in June, remains uncertain.