TMAC Resources has signed a deal to buy the Hope Bay gold project in Nunavut from Newmont Mining Corporation.

Newmont mothballed the Kitikmeot region project a year ago, saying it would focus on other interests around the world.

TMAC Resources says it hopes to revive the project and bring a gold mine into production.

Under the terms of the deal, TMAC will try to sell 50 million dollars worth of common shares. The money raised will be used to re-open the Hope Bay camps, build ice landing strips, fly in equipment and complete a pre-feasibility study to support putting the Doris gold deposit into production.

Newmont will stay on as a major shareholder.