Capstone Mining Acquires Far West Mining Ltd. for $710 Million

Acted for Far West Mining Ltd.

Matter Value: CAD 710,000,000

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.

Far West was represented by Davis LLP with a team led by David Reid and including Don Collie, Ruby Chan, Elaine Tham, Brent MacLean (Litigation) and Michael Coburn (Tax).

Related Lawyers

Ruby Chan
604.643.6462

Don Collie
604.643.6472

Brent MacLean
604.643.2953

David Reid
604.643.6428

Elaine Tham
604.643.6409

Practice Areas

Jurisdictions

  • Canada