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).