Chinese company's deal to buy Nunavut gold mine facing national security review

TMAC Resources Inc. says the federal cabinet has ordered a national security review of the proposed sale of the Canadian gold miner to a Chinese company.

Shandong Gold Mining Co. Ltd. announced a deal in May to buy TMAC, owner of the Hope Bay 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 cabinet national security review, under the Investment Canada Act, raises concerns that the deal may not be able to close by a Feb. 8, 2021, deadline to complete the sale.

TMAC says it expects the deal to close in the first quarter of 2021 if it is approved.

But it noted Ottawa may not complete the regulatory review process and provide approval by the deadline.