Far West Mining Ltd. in Acquisition by Capstone Mining Corp

Published: Thursday, 18 August 2011

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Capstone Mining Corp. ("Capstone") acquired all of the issued and outstanding common shares of Far West Mining Ltd. ("Far West") 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).

This deal was featured in the September 2011 issue of Lexpert, under the "Biggest Deals" section.