Wednesday, October 8, 2025

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TMAC Resources Shares Fall After Feds Reject Chinese Takeover

It appears that Canada’s federal government has decided to block a $230 million Nunavut gold mine project takeover by a Chinese company, following a national security review.

TMAC Resources Inc (TSX: TMR) on Monday announced that the Government of Canada has rejected an upcoming acquisition of the company’s shares and its Hope Bay mining project by Chinese company Shandong Gold Mining Ltd. Although the deal initially received 97% approval by TMAC’s shareholders back in June, the Governor in Council ordered the companies via the Investment Canada Act to not proceed with the transaction.

According to TMAC president and CEO Jason Neal, the acquisition arrangement did not receive the necessary regulatory approval, and as a result the anticipated $230 million purchase by Shandong Gold Mining will no longer proceed. The transaction had already been approved by the Ontario Superior Court of Justice as well as the Commissioner of Competition – which even issued an early termination to the waiting period. However, the Investment Review Division of Innovation, Science and Economic Development Canada, which oversees the implementation of the Investment Canada Act, has yet to comment on the sudden termination.

The Hope Bay gold project is located in the Kitikmeot region of Nunavut, and boasts gold deposits that can produce up to 150,000kg of gold. Over the project’s 30-year lifespan, it has been owned by three different mining companies, with TMAC acquiring the project in 2012. Although the property did not produce gold for commercial sale until 2017, a feasibility study conducted in March noted the potential for doubling the output of ore, but at a cost of $683 million.

Since TMAC’s acquisition of the Hope Bay gold project, it had poured over $450 million into the development of its deposits. However in May 2020, the company announced a definitive agreement to sell the property to Shandong Gold Mining. Following the announcement earlier this year, TMAC’s price rose to $1.75 per share, before falling through the year. Shares of the company sunk as low as $1.05 last week with the announcement of the blocked transaction, before recovering to close the week out at $1.33 per share.


Information for this briefing was found via Sedar and TMAC Resources Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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