Frontier signs deal with KORES on rare earth project

Frontier Rare Earths Ltd said on Monday it signed a definitive agreement to partner with Korea Resources Corp (KORES) to fast-track the development of the Zandkopsdrift rare earth project in South Africa.
The agreement involves an investment by KORES in both Frontier and the Zandkopsdrift project, along with an off-take agreement that could commit up to 31 percent of future production.
The Korean state-run resource company will acquire an initial 10 percent interest in the rare earth project to secure off-take rights for 10 percent of production.
KORES will also have the right to acquire a further 10 percent interest in the project and up to a 10 percent share of Frontier.
Frontier expects to produce about 20,000 tonnes of separated rare earths annually from Zandkopsdrift, which is located 450 kilometers (280 miles) north of Cape Town.
Frontier plans to start production from Zandkopsdrift in 2015.
The definitive agreement follows an earlier non-binding deal signed by KORES and Frontier in July. KORES confirmed the official agreement on Sunday.
KORES said it had signed a memorandum of understanding with five other domestic companies -- Hyundai Motor Co, Samsung C&T Corp, GS Caltex Corp, Daewoo Shipbuilding & Marine Engineering Co Ltd and Aju Corp - to take part in the project.