Canada rejects Shandong Gold’s bid to purchase Arctic gold mine

Chinese miner planned to purchase TMAC Sources for C$230 mln

Canada had been conducting countrywide stability evaluate of the offer

Adds TMAC statement, background

Dec 22 (Reuters)The Canadian govt has turned down Shandong Gold Mining’s bid to get Canada’s TMAC Resources TMR.TO, the companies mentioned, with the Chinese miner introducing that the sale was blocked on countrywide safety grounds.

As the COVID-19 pandemic has prompted financial dislocation, nations around the world from Australia to Canada have enhanced scrutiny on deals by point out-operate Chinese miners this calendar year.

In a filing to the Shanghai Stock Exchange on Tuesday, Shandong Gold 600547.SS, 1787.HK, just one of China’s biggest gold miners, reported it experienced been given notice of a choice by Canadian authorities on Dec. 18 that it need to not continue with the offer.

In its individual filing late on Monday, TMAC also explained it been educated of these kinds of an get underneath the Financial commitment Canada Act.

Shandong Gold explained in Could it would pay out C$230 million ($179 million) to acquire TMAC, which operates the Hope Bay mine in the northern and strategically important territory of Nunavut.

Canada in Oct launched a national protection overview of the proposed acquisition that was prolonged previous month. .

The past significant Chinese acquisition blocked by Canada was a proposed C$1.51 billion takeover of development corporation Aecon ARE.TO by China Communications Development Co Ltd 601800.SS, also on national stability grounds, in May well 2018.

Bilateral relations have been fraught considering the fact that Canada’s December 2018 arrest of Huawei Technologies Co Ltd Main Money Officer Meng Wanzhou at the ask for of the United States.

Canada’s department of Innovation, Science and Economic Growth, which oversees overseas expenditure, did not instantly reply to a request for remark.

($1 = 1.2865 Canadian bucks)

(Reporting by Tom Daly further reporting by Jeff Lewis in Toronto Enhancing by David Goodman and Barbara Lewis)

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