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Voting shareholders in TMAC Resources are 97.1 per cent in approval of a pending $149 million (U.S.) sale of the company to China’s Shandong Gold Mining.

The vote was held during a special meeting held Friday.

TMAC Resources’ shareholders voted 97.1 per cent in favour of selling the company, which operates the Hope Bay property in the Kitikmeot, to China’s Shandong Gold Mining.
photo courtesy TMAC Resources

The deal would pay investors $1.75 per common share. Shares were trading at $1.65 on Friday afternoon. However, they had been worth as little as 45 cents apiece in late March when the Covid-19 pandemic rattled markets around the world.

TMAC Resources operates the Doris North gold mine on the Hope Bay property in the Kitikmeot region. The Kitikmeot Inuit Association — itself a minority shareholder in TMAC Resources — stated that it has no comment at this time as it’s “working through the process.”

Shandong Gold Mining is a state-owned entity. Yellowknife MLA Rylund Johnson recently warned against approving the sale, stating that “there are so many risks that come with allowing the Chinese government to increase influence in the Arctic, including the fact they are one of our main competitors in mining.”

The Government of Canada does have the authority to veto the sale of Canadian resources to foreign interests, although it’s not yet clear what will happen in this case.

TMAC Resources stated on June 30 that it obtained a final order from the Ontario Superior Court of Justice approving the transaction. Providing that all regulatory approvals are granted, the deal is expected to close during the third quarter of this year.

The company also announced that it’s delaying the public filing of its compensation to TMAC executives. That information will be released at its annual general meeting, but only if that meeting of shareholders is required to take place prior to Dec. 31.

 

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Derek Neary

Derek Neary has been reporting on developments in the North for 18 years. When he's not writing for Nunavut News, he's working on Northern News Services' special publications such as Opportunities North,...

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  1. Don’t do it! bad for country and the Nord. Sell out to tyrannys those pathetic shareholder. FT