Tuesday, December 15, 2020

Nunavut’s Hope Bay goldfields to be bought by China’s SD Gold.....Many Angry At The Liberal Government!! [see comments]

 NEWS  8 MAY 2020 – 4:10 PM EDT

Nunavut’s Hope Bay goldfields to be bought by China’s SD Gold

“We look forward to completion of the transaction and the opportunity to invest in the project for years”

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)

By  Jane George

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 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.

In the release, SD Gold said it would, among other commitments, maintain contracting benefits to those serving Hope Bay, “including the continuity of existing significant contract business to local, Inuit-owned firms”; keep up the flow of royalties, fees and taxes to Inuit and territorial governments; and continue to grow Inuit employment at Hope Bay.

TMAC’s president and CEO, Jason Neal, described SD Gold as “one of the world’s largest gold producers,” which he said has the “financial strength, technical capability and long-term vision to maximize the value of the Hope Bay camp.”

But the Kitikmeot Inuit Association, which also holds more than one million shares in TMAC, wants to take some time to look at the deal.

TMAC had already signed an impact and benefits agreement with the KIA. Hope Bay sits mostly on Inuit-owned land controlled by the KIA and Nunavut Tunngavik Inc., which over the mine’s lifetime could expect to receive about $400 million in royalties, mineral taxes and other payments.

“KIA supports the Hope Bay Project and all of the benefits it has brought and will bring to Kitikmeot Inuit, and subject to KIA conducting its own due diligence would be supportive of a sale of TMAC to SD Gold, if KIA determines the proposed sale satisfies KIA’s mandate,” said Stanley Anablak, president of the KIA, in the release.

“KIA’s mandate is to manage Inuit-owned lands and resources to protect and promote the social, cultural, political, environmental, and economic well-being of Kitikmeot Inuit.”

Under its benefits agreement, the KIA receives one per cent of the value of all gold produced at Hope Bay.

The KIA also receives $1 million a year to offset land management costs, monitoring and research for environmental permits, and costs related to the implementation of the benefits agreement.

The sale will require the approval of at least 66 and two-thirds per cent of the votes cast by TMAC shareholders at a special meeting expected to be held in June.

In addition to shareholder and court approvals, the transaction is also subject to regulatory approval in Canada and China.

BHP, Miramar, Newmont and TMAC have explored Hope Bay for more than 30 years, TMAC said.

During that time, more than $1.5 billion has been spent in exploration and evaluation, surface infrastructure, and mine and process plant development.

TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay.

Recently, TMAC has had to deal with disappointing production results and some challenges due to the COVID-19 pandemic.

(73) Comments:

  1. Posted by Chuck Hatkaittuq on 8 May, 2020

    I’ve only started working at Hope Bay November 2019 and I enjoy working there, I’ve been working in the Lab which is a new carrier for me to start with and I really look forward to continuing working there to support my family and to help this growing company or the next to keep it going.

      • Posted by Ken Leslie Smith on 9 May, 2020

        You must be a foreign national. Your comment is so full of nonsense that it reeks of crap.. something written by the foreign company that is attempting to purchase a Canadian company. Sorry but I’m upset by the obvious misdirection you’re attempting to pull off. Chinese companies should stick to china, Canadian minerals and property should remain in Canadian hands.. better yet let’s gift them to the indigenous people who so rightly deserve them.

        • Posted by Melissa Fleury on 10 May, 2020

          I totally agree, it is nonsense and it has to stop NOW, Canada where are you?

        • Posted by Alfred on 12 May, 2020

          Absolutely agree with you. Foreign ownership, especially Chinese should be restricted to a minimum if necessary.

        • Posted by Billy Bob on 14 May, 2020

          The Chinese PROPAGANDA MACHINE is in full gear! China continues to write cheques and buy up as many Natural Resources around the world for their own political and economic agenda, but does not include behaving like a responsible global citizen. Every move Communist China makes, only furthers their agenda, so be ready to see more Chinese State sponsored propaganda and pushback by anyone who opposes or criticizes their agenda and ulterior motives. Time to push our own agenda and utilize our resources for our own country’s needs. Take care of our own Canada & Nunavut!

          • Posted by Margaret Cundell on 15 May, 2020

            Let no one be blinded by the charming soothing rhetoric of the Chinese. They think they have the Canadian Government and some Canadian businessmen In their back pocket., and cash will swing it. China do not have a foothold in the North American Arctic which they are very keen to have: its as close as possible to the US , great access at Hope Bay to the north . Pacific, and a relatively unworldly population which will be easily manipulated. Exactly what they have accomplished in Africa.
            Make no mistake it won’t be long before that Gold Mine will be masking a very advanced Secret Intelligence operation. Couldn’t be more ideal!
            Do you think it will stop there.? The Chinese have Canada directly in their sights & in fact are already well
            In their way. And it is unbelievable how most Canadians do not see it and/or focus on Stopping it going any further. Huawei is just toddler stuff!
            If this Chinese purchase is not stopped, I give up and unfortunately the Inuit will be the first to suffer and realise what a terrible blunder was allowed by the Federal Government if no one else.
            Get on the programme before it’s too late . There will be no going back I can assure you.

            • Posted by FREDERICK GILLESPIE on 15 May, 2020

              Margaret Cundell has sounded a real alarm bell!!!

              We cannot let this strategic company land in the hands of the Chinese…especially when they have caused the economic collapse that is precipitating the economic challenges that are forcing the sale of this Canadian public company.

              The Ontario or Federal Govt should purchase this company before letting it into China’s hands.

              • Posted by darryl on 10 June, 2020

                I know of several miners who cannot afford the proper certification who would give their right nut to work in the mining industry. Had the canadian governement created our own company hundreds of canadians who are unemployed would be working right now.

            • Posted by Shelly on 28 May, 2020

              SOOOOO agree with you!!!!! Sneaky way to get into your country, set up secret intelligence and military facilities…quick access to Canadian and US military targets and cities. Don’t trust them…they are stealing scientific research, military research and even Covid19 vaccine research…,

          • Posted by K Bartlett on 31 May, 2020

            You couldn’t be more right! This sounds like such a bad idea and the people selling are being bought because the Chinese are offering 4.2 % more than what it’s worth. Dear God this is a huge mistake and Canada will be right in the middle of two enemies.

        • Posted by Christina on 22 May, 2020

          Yes. I agree. At the moment, Canada is one of the few sane countries left on the planet. Let’s keep it that way.

        • Posted by Dawna on 22 May, 2020

          A voice of reason thank you. Canada needs to stop selling out resources. I like the passing of the mines ideas to the indigenous

        • Posted by Carrie on 23 May, 2020

          Canadian owned is what is most beneficial

        • Posted by pat wilson on 25 May, 2020

          i agree 100% with you Ken. nothing good will come if this deal goes thru.

        • Posted by Shelby Sim on 27 May, 2020

          Thankyou for voicing my exact thoughts. Well said.

        • Posted by Doug on 28 May, 2020

          This sale would be more than a hugh mistake if allowed by the Liberal government. China is buying up resources all over the world. For example – in Australia there is grave concern and backlash that too much of Australia has been purchaced by China including port and docking, at one of the seaports, for a hundred year lease. China is a communist country that is suppressing and imprisoning many of It’s citizens for no just cause. Now China is about to suppress, censor and imprison Hong Kong young people who are demonstrating for democracy and their continued autonomy from China.
          China is becoming more aggressive in the south China sea with construction of military installations on created islands. China is also posing a greater threat to Taiwan and Japan.
          It is becoming more apparent that China is becoming the next big threat to world peace and stability. This sale must be blocked!

        • Posted by Lyse Myette on 28 May, 2020

          I agree with you. I think China is trying to buy Canada strategic land and business, we should keep our business and leave China in China

        • Posted by Chris Burgess on 29 May, 2020

          I agree

        • Posted by Lucy Friesen on 31 May, 2020

          Please do not sell Canadian resources to any foreign company. I know the money is tempting but lets keep Canada for Canada. Maybe we could all as Canadians band together and just say no. I realize this is really not my businesses because I live in BC but China can not be trusted.

          • Posted by Terry Clarke on 2 June, 2020

            As Canadians….. we must be Canadians….. the land , the resources, are Canada………. we can Use the surface for travel etc……and the development of industries…… but the resources belong to the Provincial Government….. Alberta has invoked this years ago…… now all provinces should do it

      • Posted by Teresa on 9 May, 2020

        SD is buying 12 million common shares?
        Kitikmeot Inuit Association only owns 1 million?
        Does that mean SD are allowed to vote to make up part of the 66%. So SD is buying its way in?
        I should hope not!
        Have you investigated people of the lowest paid positions in their company to see how they feel they are being treated and ‘taken care of’?
        If they highly recommend their employer-great, if not-why not?
        It just sounds like a sales pitch too good to be true. And you know what they say about things that sound too good to be true.
        Don’t sell OUR CANADA!!!

      • Posted by Brad on 10 May, 2020

        I’m sorry but selling off our natural resources to another country is never a good idea. Especially one that operates far from any type of democratic process like China. The mining and handling of our resources needs to be looked after by Canadian companies!

      • Posted by David on 12 May, 2020

        I think no other company will look after the environment, the local population, Canadian interest as well as SD Gold will. No other company will do the job as well as SD Gold will. Plus a 4% over the current price is a very good deal for SD Gold. We should all be thankful and hope that there will be more projects in Canada that can and will be sold to companies such as SD Gold.
        Am I the only one here who notices the grammar and style is very similar to emails from Chinese retailers like DH Gate? He must have deleted “friend” two or three times to hide it.

        Here’s what you get from China……….. propaganda from Chinese nationals pretending their name is Roger.

      • Posted by Claire on 31 May, 2020

        Do not trust any company coming out of China. They have absolutely no integrity as we have seen by this entire Covid fiasco. I hope you will take this morning to heart. Have a great day.

      • Posted by Marilyn Davidson on 2 June, 2020

        Anybody using common sense about selling to China? Also, so close to the NW PASSAGE…Hell-o, anybody home in Parliament?

    • Posted by James Fredrick Beaty on 11 May, 2020

      Chuck are you insane? There will be no future here for you, your children, or grandchildren. Once things get rolling, you will be replaced with a Chinese. Same with all of your relatives and friends. What makes you different from Africa?

    • Posted by Brian Martin on 25 May, 2020

      Why in the hell would our government allow more of natural resources to be sold to outside parties much less what is happening with China in our country and around the world. We are led by a coward and gutless spoiled man if you can call him that. Brian Martin

  2. Posted by John on 8 May, 2020

    China is buying into everything around the world, soon they will own the world.
    Is our government still paying for a port and road for them too?

      • Posted by Jeff on 8 May, 2020

        I agree with John. Canada continually opens its doors to foreign ownership of everything. And with foreign ownership comes issues. Canada still has 2 citizens locked in a China prison on trumped-up charges. But TMAC Resources Ltd has no issues with that… it’s all about the $$. Pathetic.

        • Posted by Bobbie on 8 May, 2020

          What can we citizens do to stop this? Is there a petition we can sign? Anything???

          • Posted by Colin Gledhill on 11 May, 2020

            Write your local MLA, write your local MP, write the PM of Canada. China has had 20 years to prove their ability to be a honest, transparent partner in a more open world. I’d say look at their track record around the world.

        • Posted by Marlene Koppang on 9 May, 2020

          Yes, China owns a lot of companies and other properties in Canada. You are right they will soon own Canada and probably other countries in the world! What a shame we have ended up a Communist Country! Wonder what our Forefathers think about that?

  3. Posted by Brian on 8 May, 2020

    This really upsets me that we are selling out to Foreign countries !!
    There mining company’s in North America that can buy that project
    Do not sell to China ! They have a very poor record!!! For human rights , China is holding Canadians in jail for no reason!!!
    No deal

  4. Posted by The Old Trapper on 8 May, 2020

    Fact Checker, I’m surprised that you took the time to translate your comments from the original Chinese. It is not in the long term interests of the TMAC shareholders, KIA, Nunavut, or Canada to approve the takeover of TMAC by Shandong Gold Mining.
    Let’s start with the premium offered on the price of TMAC shares, a pitiful 4.2% of Thursday’s close. Normally with a takeover a premium of 20% to 40% would be offered. This would be especially true with a gold company during this pandemic where gold has recently gone from $1500 per ounce to $1700 per ounce with many analysts predicting prices later this year of over $2000 per ounce.
    A little opportunistic of a Chinese mining company making this takeover move during the Covid-19 pandemic which originated in China. It would be interesting to see if this is happening in other countries as well.
    A second Chinese mining company in the area will also lobby the KIA, the GN, and Canadian government to build the Grey’s Bay Port and Road project at our expense. You can bet that the refined ores and metals will be shipped directly to China, it’s part of how these Chinese owned mining companies operate.
    Last, you only need to look closely at how China and Chinese mining companies operate in Africa. China trades infrastructure loans for resources and ties in adherence to China’s viewpoints and worldwide ambitions. Add in a lot of graft and corruption with the African leaders, the exploitation of the work forces in the various countries, the lack of adherence to host country environmental standards, and often leaving toxic environments and their resultant cleanup to the host governments, and you will get an idea of how China works.
    China is used to taking the long view, such as the 99 year lease with the British for Hong Kong. We see how that is working out for Hong Kong citizens since 1997, losing a bit more freedom every year.
    Or China building fortified islands on disputed atolls in the South China Sea giving them a huge military presence and dominance over these trade routes. This is despite international condemnation.
    Never forget that China is a totalitarian state and has no regard for Canada or Canadians. There are still two Canadians locked up in Chinese prisons on trumped up “spying” charges over the detention of the Huawei executive on the U.S. extradition request.
    It’s about time that our federal government said “NO” to China.

    • Posted by INUK on 9 May, 2020

      Funny , how the Americans, use their military might to get , what they want and the Chinese write a cheque.

    • Posted by yvonne morris on 9 May, 2020

      Thank you for educating many who would not know these facts…How can we get this on the news to get Canadians riled up to save our Country from foreign takeovers..You are right..4.2 % is piddly to say the least especially with the price of Gold so high and climbing for a single ounce…We need to take a stand…

  5. Posted by Cynthia wunderlich on 8 May, 2020

    I don’t know why people even put up the facade of contemplating resource extraction projects anymore in Canada. They will get their rubber stamp. Foreign corporations are destroying Canada’s environment. better start taking mandarin classes. Harpers FIPA ensures Canada rubber stamps China’s resource extraction proposals. How big are the tailing ponds going to get and what waterways will be destroyed?

  6. Posted by Maureen johnston on 9 May, 2020

    I hope KIA is smart enough to say NO, to this project.
    The Chinese have a proven track record, of accidents and fatalities in their mines around the world. They do not have any regard for the enviroment, or the people that work for them.
    They see and treat native people, like dog crap under the soles of their shoes.

    Keep this mine Canadian.

    • Posted by Lils on 9 May, 2020

      IKEA will say and do whatever will be more profitable for it. It has nothing to do with the environment or people. It is all about money and doing business.

  7. Posted by Tammy Ford on 9 May, 2020

    Why do we continue to let China buy into our country? I agree with Jeff….what about the 2 Canadians who are in a China Prison??????? Is that not a concern for our Prime Minister???

    • Posted by Harry Rivers on 9 May, 2020

      Foreign ownership of our Canadian Lands must not be permitted. Our government must never approve the sale. China has no “homeland” and must now buy land in other countries, just to acquire the mineral rights and a place to foster their grip on humanity. They will have rights to the Northwest Passage and have the military power to exercise those rights.

    • Posted by Jeff on 9 May, 2020

      Further to this. Chinese investors own
      a huge % of real estate in Yellowknife, Vancouver, Victoria, Toronto, Whistler, etc. If you go to Richmond, BC, you would swear you had instantly transported to Shanghai. Chinese govt have expressed an interest in sitting on the Arctic Council. Wth?! a country really should have a coastline bordering the arctic to legitimately sit on this council. Oh and let’s not forget China’s interest in Greenland… currently dangling huge development $$ to entice the country & Denmark to bite. How can we as an individual & nation resist Chinese govt overtures? Speak out on the subject at forums like this, contact your MP, MLA, RIO org reps, & buy/support 100% CANADIAN made products & businesses.

  8. Posted by Larry Simpson on 9 May, 2020
  9. Some good comments made here. Also, this investment will have geopolitical payoffs too as China is very interested in the Northwest Passage as the ice-free season lengthens for shipping. They probably don’t even care if this mine makes money, if it was strategic metals it would be different. And you should note what a lot of Africans think now about Chinese investments, ten years later. Ask Kenya how it is muzzled by the Chinese infrastructure building there. Other countries like Ethiopia have the same Chinese investment and the leaders are paid off nicely to keep quite. The Head of WHO is from Ethiopia, big Chinese supporter as Chinese support via the Executive Council of UN leveraged him that job.

  10. Posted by Joe W on 9 May, 2020

    “The Chinese have a proven track record, of accidents and fatalities in their mines around the world. They do not have any regard for the environment, or the people that work for them.
    They see and treat native people, like dog crap under the soles of their shoes.”

    This is my favourite comment. Because Europeans have an excellent record of environmental protection and worker safety and certainly Europeans have NEVER treated native people poorly. LOL

    Racism is such a wonderful characteristic.

    • Posted by Martin Broeders on 9 May, 2020
  11. It is sad that Canadians do not have the willingness, guts or foresight to invest in Canada. When we where a British colony, it was The Hudson Bay and The North West Fur Trading Co. and Lumber Barons that exploited the resources . WE CANADIANS NEED TO FUND THE RESOURCE EXTRACTION Business. We thereby control what actions are reguired and most important the MONEY stays in Canada.

  12. Posted by Ken on 9 May, 2020

    I have worked up in the region the one thing you people and not saying much about is the native people of the region they all should have a say in this they are a smart people and should be allowed to have there say and input as to what there country need and they want

  13. Posted by Edward Mikolas on 9 May, 2020

    What is the potential of this mine? How about a indigenous Company buying the mine to earn revenue for the many reasons that local people need. Let,s keep our resources owned by Canadians.

    • Posted by Rock Dallaire on 10 May, 2020
  14. I’m glad some of the Canadian (INUITS) people are starting wake up. Just think about what going on right now who fault and it will happen again. I hope Canadians will do the right thing not !! Pm Trudeau he is for China. I worked in Rankin Inlet nice place keep that way! who know what will happen if China takes over??I have some friend in Rakin Inlet and I respect there choices, be smart about it.

  15. Posted by Sickest on 10 May, 2020
  16. This is sickening. 1. 4% interest is nothing to be praised about. 2. They have no regard for Canadians. 3. Northwest passage will be theirs to do what they want with it. 4. This is native land and Canada is selling it to an outside country?
  17. Wtf is going on? KIA, take care of your people and say no or you will end up with no economy, period.

  18. Posted by Phil on 11 May, 2020

    So if this takeover goes through the Chinese will use possession of the mine to allow them shipping through the Canadian Arctic whether Canada likes it or not. They will also claim a need to be involved in resolution of Arctic territorial matters, since they have been trying for years to have ownership of ANYTHING in Arctic waters. They will disregard agreements with Canada’s Inuit people and bring in Chinese labourers to work at the mine. The abundance of Chinese workers and Chinese culture at the mine will be used to dissuade Canadians of any culture from working at the mine.

    And they will use their presence in the Canadian Arctic to pursue their ultimate goal which is to outright purchase a significant portion of the territory of Nunavut.

    This is not about getting a good deal on the price of the shares; they would pay almost anything for this, and it doesn’t matter whether they can operate the mine efficiently. This is about China getting possession of land in Canada’s Arctic, and the people of Canada need to make enough fuss about this so it doesn’t just quietly happen. Our government in Ottawa is too eager to play ball with China. We need to contact every politician we possibly can and make it clear that THIS IS NOT ACCEPTABLE.

    The KIA should not be fooled into thinking this will be a good deal for them; the KIA should do everything possible to block this deal.

    • Posted by Annie on 11 May, 2020

      I agree with you 100%. I have written a letter to my MP & MLA & RIO to tell them my worries about Chinese govt owning a piece of Inuit land. If this was USA it WOULD NOT HAPPEN.

          • .......................................................................................................................................................................
          • Last week, we received news that Nunavut gold miner Tmac Resources  is being acquired by Shandong Gold for US$149 million, or an enterprise value of US$189 inclusive of net debt. *Clearly the citizens of Canada's  North wont have anything to do with the Chinese.

No comments:

Post a Comment

Comments always welcome!