Posted in | Copper

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

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.

Joel Scanlon

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Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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