Frontier Rare Earths Limited (TSX:FRO) announced that it has expanded its agreement with Korea Resources Corporation to expand the strategic partnership around the Zandkopsdrift rare earth project in South Africa.
As quoted in the press release:
Highlights: Ores option to increase its participation up to a 50% or equal interest with Frontier in Zandkopsdrift (see note 1), 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 and Frontier and Kores to cooperate in relation to downstream opportunities in the area of rare earth metals, alloys and magnets.
President and CEO of Frontier Rare Earths, James Kenny, said:
We believe that the agreement reached with Kores to significantly expand our current joint venture arrangements is a strong vote of confidence in both the potential of the Zandkopsdrift project and the management of Frontier. We have developed an excellent working relationship with Kores over the past 12 months, and have a very high regard for their management team, organisation and capabilities. Working together with Kores we believe that Frontier will be very well placed to meet our objective of becoming the next major producer of separated rare earths outside of China.