Frontier Rare Earths Limited (TSE:FRO) reports that it has signed a strategic partnership agreement with Korea Resources Corporation designed to accelerate the development of Frontier’s Zandkopsdrift rare earth project, South Africa.

Frontier Rare Earths Limited (TSX:FRO) reports that it has signed a strategic partnership agreement with Korea Resources Corporation designed to accelerate the development of Frontier’s Zandkopsdrift rare earth project, South Africa.

The press release is quoted as saying:

Under the terms of the agreement, which is non-binding, KORES will acquire up to a 20% interest in the Zandkopsdrift project as well as up to a 10% equity position in Frontier and the right to purchase up to 40% of Zandkopsdrift’s rare earth production. The parties expect to sign a binding strategic partnership agreement in Q4 2011.

Frontier Rare Earth’s President and CEO,James Kenny says:

“Signing a strategic partnership agreement with KORES is one of our most important milestones achieved to date and represents a significant third-party endorsement of our Zandkopsdrift project.” “KORES, which has earned an international reputation for its world-class financial and technical capabilities, is at the forefront of Korea’s drive to secure stable supplies of natural resources, including rare earths, which are crucial to its high-tech economy. Working together with KORES, we are confident that Frontier will achieve its objective of becoming one of the first new large scale rare earth producers outside China.”

Korea Resources’ Corporation’s President and CEO, Shin-Jong Kim says:

“KORES has developed a close relationship with Frontier and its management team since we commenced discussions in 2010, and we are very pleased to have reached agreement to cooperate in the development of the Zandkopsdrift rare earth project. As rare earths are a critical raw material needed to support Korea’s high technology industry and future economic growth, the Zandkopsdrift project is a strategic priority project for both KORES and Korea. The development of Zandkopsdrift will be a critical element of KORES’ efforts to secure a long term, stable source of rare earth supply.”

Click here to access the entire news release.