In December 2011, Frontier signed a definitive strategic partnership agreement with Korea Resources Corporation (“Kores”) focused on the financing and development of Frontier’s Zandkopsdrift rare earth project.
Under this agreement Kores acquired an initial 10% stake in Zandkopsdrift together with an offtake right and obligation for 10% of Frontier’s Zandkopsdrift rare earth production.
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.
As rare earths are critical raw materials 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.
In December 2012, Frontier completed a major strategic partnership agreement with the South Korean Government through Korea Resources Corporation (“Kores”).
Under this agreement Kores acquired an initial 10% stake in Zandkopsdrift for C$23.8m together with an off-take right and obligation for 10% of Frontier’s Zandkopsdrift rare earth production.
- 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
- Kores to cooperate with Frontier in relation to downstream opportunities in the area of rare earth metals, alloys and magnets
About Kores (www.KORES.or.kr): Korea Resources Corporation (“KORES”) is wholly-owned by the Korean government and has a stated objective of becoming a global top 20 mining company by 2020 principally through international investments and joint ventures. KORES is charged with a policy mandate to further Korea’s access to strategically important mineral resources. KORES exclusively carries out the Korean government’s mineral resources policy objectives by engaging directly, or indirectly through joint ventures or in the form of investments, in overseas exploration, development and production of strategically important mineral resources, and managing Korea’s stockpile of rare mineral resources.
KORES works closely with all major Korean industry groups and plays an active role in assembling consortia of Korean companies to selectively participate with KORES in commercial ventures. The Korean government has designated rare earths as a strategic raw material for Korea’s future economic growth and has undertaken considerable work to identify the most prospective sources of future rare earth supply worldwide.