A letter of intent announced late December 17 brings new hope to Newmont Mining’s TSX:NMC Hope Bay gold project in Nunavut. The privately held TMAC Resources proposes to acquire the development, for which Newmont took a $1.6-billion write-down in January 2012. The project has been on care and maintenance since.
Details of the LOI weren’t provided, other than to say it will terminate by March 31, 2013, and Newmont would be “a significant shareholder of TMAC.” TMAC principals include Terry MacGibbon and Catharine Farrow, both alumni of FNX Mining.
Newmont now controls the entire 80-kilometre greenstone belt that MacGibbon says “has great potential to be Canada’s next major gold mining camp.” But, according to the February 16, 2012, Nunatsiaq News, “after spending $2.1 billion on building an airstrip, fuel tanks, a road system, mine site, tailings facility and accommodations at the site, the mine couldn’t square off on deals with the Kitikmeot Inuit Association.”
In the company statement, Randy Engel, Newmont’s executive VP of strategic development, commented, “TMAC’s management team has a proven track record of developing projects with similar characteristics, both profitably and responsibly, while maximizing value for shareholders and other stakeholders.”
by Greg Klein