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Capstone Mining to Acquire Far West Mining and Form JV With Korea Resources

By Joel ScanlonApr 20 2011

Capstone Mining Corporation (TSX:CS) announced on Sunday that it has decided to acquire the Far West Mining Ltd company.

The deal was made possible thanks to the financial assistance it received from the South Korean government owned company Korea Resources Corp known as KORES. Acquiring Far West Mining will allow Capstone Mining access to the Santo Domingo copper and iron project in Chile.

The Chief Executive Officer of Capstone Mining, Darren Pylot said that the $1.1billion three way deal was a transformational development for the company. He added that he believed that the shareholders would be happy with the acquisition as it satisfied a number of the company’s key initiatives.

As per the terms the South Korean company investing in the joint venture will get a stake in the Santo Domingo large-scale copper-iron-gold development project located in Region III, Chile and half the production from the mine. It will also get a share in Capstone Mining once Far West Mining is closed down and that will make them the largest company shareholder for Capstone Mining.

The Resources hungry Asian market has become a playing ground for global mining companies for financial backing. In this particular deal the Asian capital is being combined with the Canadian mining expertise to provide the optimum deal for both parties involved.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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