Canadian government nixes Chinese takeover of miner TMAC Resources Inc.

TMAC Resources Inc. says Ottawa has turned down its deal to be bought by China’s Shandong Gold Mining Co. Ltd.

The Canadian miner says Ottawa made the decision following a review under the Investment Canada Act.

TMAC says the deal will now not go ahead and it is in talks with Shandong regarding termination of the transaction.

Shandong announced the deal in May to buy TMAC, owner of the Hope Bay gold mining project in Nunavut, for $230 million.

The friendly deal had received Chinese regulatory approvals and TMAC shareholders voted in favour of it in June.

However, the federal cabinet ordered a national security review of the proposed sale in October.