Capstone Mining has entered into a definitive agreement to acquire all of the issued and outstanding common shares of Far West Mining for a total value of C$725m ($755m).

Far West owns the Santo Domingo copper-iron-gold project in Chile, with an estimated annual production of 65,000 tons of copper and 4 million tons of iron concentrate.

Capstone has also entered into agreements with Korea Resources Corporation (Kores) to form a long-term strategic partnership to develop the Santo Domingo project.

Under the terms of agreement, KORES will acquire a 30% interest in Santo Domingo for cash value of about $218m from Capstone, after Capstone completes the Far West acquisition.

KORES will also enter into an off-take agreement for 50% of all copper concentrate and iron concentrate produced from the project over the life of the Santo Domingo mine.