TMAC Resources says Canadian security review extended for sale to Chinese buyer

The Canadian Press

Gold casting grain sits inside a glass container at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. , Bloomberg

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TORONTO -- Canadian miner TMAC Resources Inc. says a national security review under the Investment Canada Act of its sale to China's Shandong Gold Mining Co., Ltd., has been extended by 45 days.

Shandong announced a deal in May to buy TMAC, owner of the Hope Bay gold mining project in Nunavut, for $230 million.

The friendly deal has received Chinese regulatory approvals and TMAC shareholders voted in favour of it in June.

The federal cabinet ordered a national security review of the proposed sale in October, raising concerns the deal might not be completed by its Feb. 8, 2021, deadline.

TMAC previously said it expected the purchase to close in the first quarter of 2021 if it is approved.

Its shares fell two cents or 1.6 per cent to $1.20 in early trading Friday in Toronto.