UPDATE: 5/17/2011, 11.29 a.m. The second and final two paragraphs of this article have been updated to include additional details of the firms and partners involved in the transaction. A ninth paragraph has been added, detailing Yulchon’s advice in the deal. The headline has also been changed.

Canadian firm Stikeman Elliott is advising Korea Resources Corporation in its proposed acquisition, together with Capstone Mining Corp., of Far West Mining Ltd, a Vancouver-based mining concern.

Korean firm Yulchon, Blake, Cassels & Graydon and Vancouver-based Davis are also advising on the $758 million deal.

Far West owns the Santo Domingo copper, iron and gold mining project in northern Chile. The project aims to mine a combined mineral resource of 547 million metric tons. Capstone and Kores will enter a strategic partnership to operate the mining concern.

The transaction will see state-owned Korea Resources Corporation (Kores) assume 30 percent ownership of Far West, as well as an 11 percent stake in Capstone, with a value of $170 million.

The deal will be completed via a court-approved plan of arrangement, an acquisition mechanism provided under Canadian law. It is pending regulatory and shareholder approval.

In 2010 the total sum invested by Korean companies in foreign commodities projects was a record $2.64 billion, a 157 percent increase on the year before, amid strong price performance in the commodities sector.

Stikeman Elliott’s team is headed by Vancouver corporate partner John Anderson, supported by a Toronto team including corporate partner Jay Kellerman and tax partner Dean Kraus.

The firm has advised Kores in previous deals including two joint investments with LS-Nikko Copper, Inc., in Canada’s Inmet Mining Corporation in 2009 and Peruvian copper producer Marcobre S.A.C. in 2004, respectively. Both deals were led by Toronto partner Karen Jackson.

Yulchon is providing Korean counsel to the buyer. The firm’s team is led by partners Bong Hee Han and John Kim.

Capstone’s legal advisor is Blake, Cassels. Bob Wooder is the lead partner on the deal.

Vancouver-headquartered firm Davis is advising Far West with a team led by David Reid, while Borden Ladner Gervais is providing counsel to a special committee of the company’s board of directors. Its team included Vancouver-based partners Fred Pletcher and Warren Learmonth.