VANCOUVER SHERWOOD COPPER and CAPSTONE MINING have entered into a letter of agreement to combine their businesses to create an intermediate copper producer. The two companies have agreed to combine on an “at market” basis whereby each Sherwood shareholder will receive 1.566 shares of Capstone. The transaction is to be completed by the end of 2008.
Sherwood (www.SherwoodCopper.com) is owner and operator of the Minto copper mine in the Yukon and plans to develop the Kutcho copper project in British Columbia. Capstone (www.CapstoneMining.com) owns the Cozamin copper-silver-lead-zinc mine in Mexico. Together they will produce 85 million lb of copper this year and 110 million lb in 2009. Both the Minto and Cozamin mills are expanding.
Members of the board and management team will be drawn from both companies. Colin K. Benner has agreed to serve as non-executive chairman. Darren Pylot (currently president & CEO of Capstone) will become vice-chairman and CEO, and Stephen Quin (currently president & CEO of Sherwood) will become president & COO of the combined company. Richard Godfrey (currently CFO of Sherwood) will become CFO of the combined company. Other senior management from both companies will be integrated into the senior management of the combined company, retaining many of the same responsibilities.