TMAC announces national security review of transaction with Shandong Gold Mining Co., Ltd
15 October 2020
TMAC Resources Inc. announces receipt of notification that the federal Cabinet has ordered a national security review under the Investment Canada Act (Canada) of the plan of arrangement (the “Transaction”) with Shandong Gold Mining Co., Ltd. and its affiliate (“Shandong” or the “Purchaser”). The Transaction was agreed and announced on May 8, 2020. As previously disclosed, the Transaction provides for the acquisition by the Purchaser of all of the issued and outstanding common shares of TMAC not already owned by Shandong or an affiliate, by way of a statutory plan of arrangement under the Business Corporations Act (Ontario).
More than 97% of TMAC shareholders have voted to support the Transaction. Both TMAC and Shandong believe the Transaction has a strong overall net benefit to Canada and does not pose a security risk. Given the extended timelines under the Investment Canada Act, the Company expects closing of the Transaction to occur in the first quarter of 2021. The extension to timelines as a result of Bill C-20, An Act respecting further COVID-19 measures, and the related Ministerial Order issued on July 31, 2020, mean that the Government of Canada may not complete the regulatory review process and provide Investment Canada Act approval by February 8, 2021, which is the extended outside date in the Arrangement Agreement.
TMAC and Shandong remain committed to working with the Investment Review Division to obtain approval of the Transaction.