22:42:17 EDT Sat 27 Apr 2024
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Globe says SRG schemes to duck national security review

2023-12-08 07:46 ET - In the News

The Globe and Mail reports in its Friday edition that SRG Mining wants to move its headquarters outside of Canada in an attempt to skirt a national security review that would have allowed the feds to block its financing deal with an opaque China-based critical minerals company. The Globe's Niall McGee writes that Montreal-based SRG in July announced a tentative deal worth $16.9-million to sell a 19.4-per-cent share of Carbon ONE New Energy Group, even though Ottawa last year announced a virtual ban on the acquisition of Canadian mining companies by China-based enterprises because of national security concerns over the communist country's dominance in critical minerals. At the time SRG announced its deal, it warned investors that the transaction was subject to approval by Ottawa. However, in a public filing last week, SRG laid out a workaround that it says will remove Canada's power to police the transaction: The company will maintain its TSX Venture Exchange listing, but redomicile outside the country. Consequently, the C-ONE deal will no longer need Ottawa's approval, SRG said. Christopher Ecclestone at London's Hallgarten said SRG's proposed workaround makes a "total mockery" of Canada's national security policy.

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