Capstone (TSX:CS) offering C$725 million cash and shares to acquire Far West – Dominion Lending Centres Clearlease
VANCOUVER, BRITISH COLUMBIA – (April 18, 2011) Clearlease.com Reports Capstone Mining Corp. (TSX:CS) says the $1.1-billion three-way deal between itself, Far West Mining Ltd. and a big South Korean company will help the junior miner grow by advancing a major metals project in Chile.
“This is a transformational development for Capstone,” the company’s president and chief executive, Darren Pylot, said in a Monday conference call a day after announcing the deal.
In the agreement, Korea Resources Corp. would become Capstone’s largest shareholder and a 30 per cent partner in the Santo Domingo copper and iron project once Capstone acquires Far West, owner of the Chilean deposit.
Capstone (TSX:CS) is offering C$725 million in cash and shares to acquire Far West. The offer values Far West at C$9.19 per share — about 20 per cent above Far West’s value prior to the takeover announcement.
Far West shares gained 44 cents to $8.12 in mid-afternoon trading Monday while Capstone was down 23 cents to $3.98 at the Toronto Stock Exchange.
Pylot said that by acquiring the Santo Domingo project, Capstone will be on track to become a low-cost, mid-tier copper producer focused on the Americas.
Copper has a wide variety of industrial uses and that’s in great demand when the global economy is healthy although, as with other base metals, prices tend to fluctuate with the ups and downs of the manufacturing and construction industries.
One of the advantages of the Santo Domingo project is the presence of iron, which will be sold and help fund the cost of copper production.
Santo Domingo is also relatively close to a deep-water port that will ease transportation of the mine’s output to Asia, a large and growing market.
Through the deal with Korea Resources — a major producer of iron, copper, zinc, nickel and coal also known as Kores — the Canadian mining companies would get both a reliable source of funding and a guaranteed, long-term customer for half of the mine’s copper and iron output.
“This marks the start of a very important relationship between Capstone and Kores, who share similar objectives — including the need to provide further growth in copper production,” Pylot said.
Assuming the takeover deal is completed, Korea Resources would buy 11 per cent of Capstone’s shares for C$170 million and get one seat on its board of directors.
Kores will also pay $210 million cash to Capstone to acquire 30 per cent of the Santo Domingo project and provide 30 per cent of the funds required to get it into production.
It will also help Capstone arrange for funding to cover about 65 per cent of the costs, up to production.
The companies haven’t provided a formal estimate of the project’s cost to build, but executives told one analyst on Monday that his estimate range of $1 billion to $1.5 billion was a fair. They told another analyst that $2 billion was too high.
In return for its financial support and investments, the South Korean company will get to buy 50 per cent of the copper and iron concentrate produced by Santo Domingo at market rates over the life of the mine.
Kores has a similar arrangement with Sherritt International Inc. (TSX:S), a Toronto-based nickel and coal miner.
In return for funding part of Sherritt’s Ambatovy nickel-cobalt project in Madagascar, off the southeastern tip of Africa, the Korean company will have a 27.5 per cent stake in the project and rights to buy some of its output.
Far West’s directors, senior management and certain shareholders, including Quadra FNX Mining Ltd. of Vancouver (TSX:QUX), are supporting the Capstone offer.
The combined Capstone-Far West will have full funding to grow copper production by 200 per cent over the years 2011 to 2016 and increase measured and indicated resources by 125 per cent, Pylot said.
“We believe our shareholders will be very happy with this acquisition, as it satisfies a number of key initiatives,” Pylot said.
For the Far West takeover to be completed, the deal will require approval by at least two-thirds of votes cast at its shareholders meeting and a simple majority of more than 50 per cent votes cast by Capstone shareholders.
Far West president and CEO Rick Zimmer, who is an engineer by training, said on the call that the deal with Capstone will provide expertise, investment in a larger company with a more liquid stock and stable funding for growth.
“I think it’s a great deal for all three of the companies,” Zimmer said.
Zimmer acknowledged, however, that some shareholders may want a higher price for their Far West shares but said the deal is fair to Far West shareholders because of the short-term premium to the pre-offer price and potential for longer-term appreciation through shares of Capstone.
“Yes there are some people who want $15 and $20 and $30 for their stock but, on the whole, I can tell you reaction has been overwhelmingly positive.”
The companies plan to have their shareholder votes in June.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Headquartered in Downtown Vancouver, British Columbia. We’re expanding in Q2, 2011 to Calgary and Edmonton, Alberta! In Q3, 2011 we are expanding in Toronto, Ontario! Dominion Lending Centres Clearlease services clients from Coast to Coast. Our Residential Group has a team of Licensed Mortgage Brokers offering our clients the best terms and rates available in the current market. Our Commercial Funding/Mortgage Group is active across Canada Funding Mortgages in cities such as Toronto, Edmonton, Calgary, Vancouver and Victoria.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. A. Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
VANCOUVER, BRITISH COLUMBIA – (April 18, 2011) Clearlease.com Reports Capstone Mining Corp. (TSX:CS) says the $1.1-billion three-way deal between itself, Far West Mining Ltd. and a big South Korean company will help the junior miner grow by advancing a major metals project in Chile.
“This is a transformational development for Capstone,” the company’s president and chief executive, Darren Pylot, said in a Monday conference call a day after announcing the deal.
In the agreement, Korea Resources Corp. would become Capstone’s largest shareholder and a 30 per cent partner in the Santo Domingo copper and iron project once Capstone acquires Far West, owner of the Chilean deposit.
Capstone (TSX:CS) is offering C$725 million in cash and shares to acquire Far West. The offer values Far West at C$9.19 per share — about 20 per cent above Far West’s value prior to the takeover announcement.
Far West shares gained 44 cents to $8.12 in mid-afternoon trading Monday while Capstone was down 23 cents to $3.98 at the Toronto Stock Exchange.
Pylot said that by acquiring the Santo Domingo project, Capstone will be on track to become a low-cost, mid-tier copper producer focused on the Americas.
Copper has a wide variety of industrial uses and that’s in great demand when the global economy is healthy although, as with other base metals, prices tend to fluctuate with the ups and downs of the manufacturing and construction industries.
One of the advantages of the Santo Domingo project is the presence of iron, which will be sold and help fund the cost of copper production.
Santo Domingo is also relatively close to a deep-water port that will ease transportation of the mine’s output to Asia, a large and growing market.
Through the deal with Korea Resources — a major producer of iron, copper, zinc, nickel and coal also known as Kores — the Canadian mining companies would get both a reliable source of funding and a guaranteed, long-term customer for half of the mine’s copper and iron output.
“This marks the start of a very important relationship between Capstone and Kores, who share similar objectives — including the need to provide further growth in copper production,” Pylot said.
Assuming the takeover deal is completed, Korea Resources would buy 11 per cent of Capstone’s shares for C$170 million and get one seat on its board of directors.
Kores will also pay $210 million cash to Capstone to acquire 30 per cent of the Santo Domingo project and provide 30 per cent of the funds required to get it into production.
It will also help Capstone arrange for funding to cover about 65 per cent of the costs, up to production.
The companies haven’t provided a formal estimate of the project’s cost to build, but executives told one analyst on Monday that his estimate range of $1 billion to $1.5 billion was a fair. They told another analyst that $2 billion was too high.
In return for its financial support and investments, the South Korean company will get to buy 50 per cent of the copper and iron concentrate produced by Santo Domingo at market rates over the life of the mine.
Kores has a similar arrangement with Sherritt International Inc. (TSX:S), a Toronto-based nickel and coal miner.
In return for funding part of Sherritt’s Ambatovy nickel-cobalt project in Madagascar, off the southeastern tip of Africa, the Korean company will have a 27.5 per cent stake in the project and rights to buy some of its output.
Far West’s directors, senior management and certain shareholders, including Quadra FNX Mining Ltd. of Vancouver (TSX:QUX), are supporting the Capstone offer.
The combined Capstone-Far West will have full funding to grow copper production by 200 per cent over the years 2011 to 2016 and increase measured and indicated resources by 125 per cent, Pylot said.
“We believe our shareholders will be very happy with this acquisition, as it satisfies a number of key initiatives,” Pylot said.
For the Far West takeover to be completed, the deal will require approval by at least two-thirds of votes cast at its shareholders meeting and a simple majority of more than 50 per cent votes cast by Capstone shareholders.
Far West president and CEO Rick Zimmer, who is an engineer by training, said on the call that the deal with Capstone will provide expertise, investment in a larger company with a more liquid stock and stable funding for growth.
“I think it’s a great deal for all three of the companies,” Zimmer said.
Zimmer acknowledged, however, that some shareholders may want a higher price for their Far West shares but said the deal is fair to Far West shareholders because of the short-term premium to the pre-offer price and potential for longer-term appreciation through shares of Capstone.
“Yes there are some people who want $15 and $20 and $30 for their stock but, on the whole, I can tell you reaction has been overwhelmingly positive.”
The companies plan to have their shareholder votes in June.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Headquartered in Downtown Vancouver, British Columbia. We’re expanding in Q2, 2011 to Calgary and Edmonton, Alberta! In Q3, 2011 we are expanding in Toronto, Ontario! Dominion Lending Centres Clearlease services clients from Coast to Coast. Our Residential Group has a team of Licensed Mortgage Brokers offering our clients the best terms and rates available in the current market. Our Commercial Funding/Mortgage Group is active across Canada Funding Mortgages in cities such as Toronto, Edmonton, Calgary, Vancouver and Victoria.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. A. Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###Capstone (TSX:CS) offering C$725 million cash and shares to acquire Far West – Dominion Lending Centres Clearlease
VANCOUVER, BRITISH COLUMBIA – (April 18, 2011) Clearlease.com Reports Capstone Mining Corp. (TSX:CS) says the $1.1-billion three-way deal between itself, Far West Mining Ltd. and a big South Korean company will help the junior miner grow by advancing a major metals project in Chile.
“This is a transformational development for Capstone,” the company’s president and chief executive, Darren Pylot, said in a Monday conference call a day after announcing the deal.
In the agreement, Korea Resources Corp. would become Capstone’s largest shareholder and a 30 per cent partner in the Santo Domingo copper and iron project once Capstone acquires Far West, owner of the Chilean deposit.
Capstone (TSX:CS) is offering C$725 million in cash and shares to acquire Far West. The offer values Far West at C$9.19 per share — about 20 per cent above Far West’s value prior to the takeover announcement.
Far West shares gained 44 cents to $8.12 in mid-afternoon trading Monday while Capstone was down 23 cents to $3.98 at the Toronto Stock Exchange.
Pylot said that by acquiring the Santo Domingo project, Capstone will be on track to become a low-cost, mid-tier copper producer focused on the Americas.
Copper has a wide variety of industrial uses and that’s in great demand when the global economy is healthy although, as with other base metals, prices tend to fluctuate with the ups and downs of the manufacturing and construction industries.
One of the advantages of the Santo Domingo project is the presence of iron, which will be sold and help fund the cost of copper production.
Santo Domingo is also relatively close to a deep-water port that will ease transportation of the mine’s output to Asia, a large and growing market.
Through the deal with Korea Resources — a major producer of iron, copper, zinc, nickel and coal also known as Kores — the Canadian mining companies would get both a reliable source of funding and a guaranteed, long-term customer for half of the mine’s copper and iron output.
“This marks the start of a very important relationship between Capstone and Kores, who share similar objectives — including the need to provide further growth in copper production,” Pylot said.
Assuming the takeover deal is completed, Korea Resources would buy 11 per cent of Capstone’s shares for C$170 million and get one seat on its board of directors.
Kores will also pay $210 million cash to Capstone to acquire 30 per cent of the Santo Domingo project and provide 30 per cent of the funds required to get it into production.
It will also help Capstone arrange for funding to cover about 65 per cent of the costs, up to production.
The companies haven’t provided a formal estimate of the project’s cost to build, but executives told one analyst on Monday that his estimate range of $1 billion to $1.5 billion was a fair. They told another analyst that $2 billion was too high.
In return for its financial support and investments, the South Korean company will get to buy 50 per cent of the copper and iron concentrate produced by Santo Domingo at market rates over the life of the mine.
Kores has a similar arrangement with Sherritt International Inc. (TSX:S), a Toronto-based nickel and coal miner.
In return for funding part of Sherritt’s Ambatovy nickel-cobalt project in Madagascar, off the southeastern tip of Africa, the Korean company will have a 27.5 per cent stake in the project and rights to buy some of its output.
Far West’s directors, senior management and certain shareholders, including Quadra FNX Mining Ltd. of Vancouver (TSX:QUX), are supporting the Capstone offer.
The combined Capstone-Far West will have full funding to grow copper production by 200 per cent over the years 2011 to 2016 and increase measured and indicated resources by 125 per cent, Pylot said.
“We believe our shareholders will be very happy with this acquisition, as it satisfies a number of key initiatives,” Pylot said.
For the Far West takeover to be completed, the deal will require approval by at least two-thirds of votes cast at its shareholders meeting and a simple majority of more than 50 per cent votes cast by Capstone shareholders.
Far West president and CEO Rick Zimmer, who is an engineer by training, said on the call that the deal with Capstone will provide expertise, investment in a larger company with a more liquid stock and stable funding for growth.
“I think it’s a great deal for all three of the companies,” Zimmer said.
Zimmer acknowledged, however, that some shareholders may want a higher price for their Far West shares but said the deal is fair to Far West shareholders because of the short-term premium to the pre-offer price and potential for longer-term appreciation through shares of Capstone.
“Yes there are some people who want $15 and $20 and $30 for their stock but, on the whole, I can tell you reaction has been overwhelmingly positive.”
The companies plan to have their shareholder votes in June.
For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html
About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Headquartered in Downtown Vancouver, British Columbia. We’re expanding in Q2, 2011 to Calgary and Edmonton, Alberta! In Q3, 2011 we are expanding in Toronto, Ontario! Dominion Lending Centres Clearlease services clients from Coast to Coast. Our Residential Group has a team of Licensed Mortgage Brokers offering our clients the best terms and rates available in the current market. Our Commercial Funding/Mortgage Group is active across Canada Funding Mortgages in cities such as Toronto, Edmonton, Calgary, Vancouver and Victoria.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. A. Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###