UPDATE: Frontier Rare Earths and Korea Resources Corporation Significantly Expand Strategic Partnership; Shares Up 15% at Midday
Frontier Rare Earths Limited (FRO.TO) announced that it has entered into a new agreement with Korea Resources Corporation to significantly expand the scope of their strategic partnership, which is focused on the financing and development of Frontier's Zandkopsdrift rare earth project in South Africa. Kores is the Korean Government-owned mining and natural resource investment company whose mandate is to ensure that Korean industry has secure access to strategically important mineral resources.
FRO is now trading at 69 cents. More than 135,000 shares have changed hands so far.
- Kores option to increase its participation up to a 50% or equal interest with Frontier in Zandkopsdrift together with an off-take right and obligation for up to 50% of production from Zandkopsdrift.
- Kores to arrange project finance for entire Zandkopsdrift development on best available market terms.
- Kores to provide pro rata funding for the portion of Zandkopsdrift development costs not covered by the project finance.
- Kores to provide technical and operating experience for the design, construction and operation of Zandkopsdrift facilities.
- Frontier and Kores to cooperate in relation to downstream opportunities in the area of rare earth metals, alloys and magnets.
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