Navigate this market better. Subscribe for FREE stock alerts and information.

Sunday, April 17, 2011

Korea Resources and Capstone to purchase Far West for $700 million

Korea Resources Corp said on Monday it had agreed with Canada's Capstone Mining Corp to jointly buy Far West Mining Ltd for $700 million, a deal which will help tap into Far West's cooper assets. State-run Korea Resources said in a statement it invested $400 million in the deal to purchase a 100 percent stake in Far West, a Canadian copper exploration company, as part of efforts to raise South Korea's self-sufficiency in the key metal. Capstone paid the remaining $300 million, a spokesman for Korea Resources said. Prices for copper, used in power lines, construction and industrial applications, are rising on strong demand from China and other Asian economies, and miners are racing to boost production. Korea Resources also plans to set up an overseas unit overseeing its six copper projects in central and South Americas, including Far West's project in Chile, and list the affiliate's shares on Toronto Stock Exchange (TSX) in five years, the spokesman said.