Panama’s President blames previous gov’t for First Quantum mine crisis
The Cobre Panama mine paid the price for the accumulated national discontent, said President José Raúl Mulino.
Capstone Mining will acquire all the issued and outstanding shares of Far West Mining. Total transaction value will be Can$725 million.
Capstone released details of the agreement in a press release on Sunday.
On Monday morning, Capstone shares (TSE:CS) were down about 7% to $3.93 a share.
Far West owned the Santo Domingo property, a copper-iron-gold development project in Chile. To complete the deal, Capstone formed a joint venture with the Korea Resource Corporation. Upon completion of the Far West acquisition, KORES will acquire a 30% interest in Santo Domingo in exchange for Can$210 million.
Capstone Mining Corp. is a mid-tier copper miner based in Vancouver, British Columbia and listed on the TSX. Capstone runs the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the 100% owned Minto copper-gold-silver mine in the Yukon, Canada.
Far West shareholders will be entitled to receive 1.825 shares of Capstone and Can$1.00 in cash. Capstone says the offer represents a total of C$9.19 per Far West share, based on the volume weighted average price of Capstone shares on the TSX for the 30 trading days ended April 15, 2011 and a premium of 30% to the volume weighted average price of Far West shares on the TSX for the same period.
Michael Allan McCrae wrote this story. You can contact him at [email protected]or @michaelmccrae.
