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NUNAVUT
If the proposed acquisition of the Hope Bay project is finalized, exploratory work could resume on the currently-stalled project within the year.

If the proposed acquisition of the Hope Bay gold project is finalized, exploratory work could resume on the currently-stalled project within the year. Hope Bay's Doris North Camp, shown here, is located about 90 km south of Cambridge Bay. - photo courtesy of Hope Bay Mining Ltd.

Newmont Mining Corporation of Canada Ltd. announced the proposed acquisition of the Hope Bay Project by TMAC Resources Inc. on Dec. 17.

Newmont and TMAC have until March 31, 2013, to finalize all agreements and approvals before the transaction expires.

"If (the transaction) is completed, it should be within the year that (TMAC Resources Inc.) would restart work on the mine," said Chris Hanks, vice-president of environmental affairs for Hope Bay Mining Ltd. "They are looking at what that means right now. They're going through all the data and they're developing their work plans at the moment."

Newmont put the Hope Bay gold project, located approximately 90 km south of Cambridge Bay, into care and maintenance in January 2012 due to concerns about high working costs and upfront capital costs.

By February 2012, Newmont had invested approximately $2 billion in the project, including the initial price tag of approximately $1.5 billion.

The project had employed more than 200 people, including an average of 142 employees identified as Inuit beneficiaries per month.

While TMAC Resources Ltd. will become the operator should the transaction be finalized, Newmont will remain involved as a "significant" shareholder.

Hanks said TMAC's role in the development in FNX Mining and its management of narrow vein mining projects similar to Hope Bay makes it an ideal choice for operator of the Hop Bay project.

"They are very successful narrow vein underground miners," said Hanks.

"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," stated Rand Engel, Newmont's executive vice-president of strategic development of in a news release. "We look forward to developing a strong, long-term partnership as a significant shareholder of TMAC."

Dr. Catherine Farrow will be taking on the role of chief executive officer for TMAX, coming from leadership roles in FNX Mining Company Inc, Quadra FNX, and KGHM International.

"With her exploration and operating expertise and experience, she is the ideal person to lead the future exploration and development of what we expect will be Canada's next gold mining camp," stated Terry MacGibbon, executive chairperson of TMAC, in a news release.

"We believe the Hope Bay Belt has great potential to be Canada's next major gold mining camp and a long-term, profitable, and environmentally-responsible gold producer for the benefit of all stakeholders."

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