A Chinese gold-mining company wants to buy TMAC Resources, which owns the Hope Bay goldfield, located 150 km southwest of Cambridge Bay. (File image)
“We look forward to completion of the transaction and the opportunity to invest in the project for years”
May 10, 2020
TMAC Resources Inc., which owns the Hope Bay gold mine complex in western Nunavut, is poised to be bought up by a Chinese gold-mining giant.
The Shandong Gold Mining Co. Ltd., better known as SD Gold, is willing to pay $207.4 million for the western Nunavut mine. That’s $1.75 per share in cash, a price that is 4.2 per cent above Thursday’s closing price on the Toronto Stock Exchange.
“We look forward to completion of the transaction and the opportunity to invest in the project for years to come as the generational potential of the camp is unlocked,” said Yumin Chen, chair of SD Gold.
“We look forward to working closely with all stakeholders and local communities in Nunavut to deliver a world-class operation that will benefit the regional economy for generations to come.”
Even before the deal is finalized, SD Gold is also making an equity investment of about US$15 million to support the cost of the TMAC’s sealift this year, by buying 12 million common shares.
If the deal goes through, SD Gold commits to much the same path as TMAC.
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