Capstone Mining (CS.TO) said on Sunday it has agreed to acquire exploration company Far West Mining (FWM.TO) in a cash-and-stock deal worth C$685 million ($713 million), as it moves to expand its copper resources and future output. The bid is being backed by South Korea's state-owned Korea Resources Corp (KORES), which will acquire a 30 percent stake in Far West's flagship asset the Santo Domingo copper project in Chile for C$210 million, following the close of the deal. KORES will also separately acquire a 11 percent stake in Capstone for C$170 million. The bid for Vancouver, British Columbia-based Far West comes amid a flurry of M&A activity within the copper sector, as prices for the metal hover just shy of a record high of over $4.50 a pound. Under the terms of the offer, Capstone is offering 1.825 shares of Capstone and C$1 in cash for each share of Far West. This implies an offer price of C$8.68 a share, or a 13 percent premium to Friday's close.
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