Capstone Mining Acquires Far West Mining Ltd. for $710 Million
Acted for Far West Mining Ltd.
Matter Value: CAD 710,000,000
Friday, 17 June 2011
Capstone Mining Corp. acquired all of the issued and outstanding common shares of Far West Mining Ltd. pursuant to a statutory plan of arrangement, effective June 17, 2011. The aggregate value of the consideration paid for Far West by Capstone at the announcement date was approximately C$710 million.
Far West is now held through a newly-formed subsidiary of Capstone, owned 70% by Capstone and 30% by Korea Resources Corporation ("KORES").
Concurrent with the completion of the Arrangement, KORES acquired a 30% interest in the entity that owns Far West for cash consideration of approximately C$195 million to Capstone, and subscribed for approximately 40.2 million common shares of Capstone, representing an approximate 11% interest in Capstone, for aggregate cash consideration of approximately C$175 million.
Angeline S.B. Nyce, R.P.F.