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pastarocket · 12-14-2012, 12:26 PM

A big day for Frontier Rare Earth Resources Ltd (T.FRO).

Korea Resources Corporation completes acquisition of a 10% interest in Frontier Rare Earths' Zandkopsdrift project for C$23.8 million

Working Capital
Following receipt of the payment from Kores Frontier's cash balance is approximately C$52 million. This is expected to be sufficient to fund the completion of a Preliminary Feasibility Study and a Definitive Feasibility Study at Zandkopsdrift, work on the Company's other proposed exploration and development programs and corporate overheads. Kores is also required to pay Frontier 10% of all operating costs and expenses related to Zandkopsdrift from July 2012 onwards, amounting to approximately C$0.4 million as of the end November 2012. The Company has NO debt.

James Kenny, President and CEO of Frontier Rare Earths commented: "The acquisition by Kores of a 10% interest in Zandkopsdrift is a strong vote of confidence in both the potential of the Zandkopsdrift project and the management of Frontier. With our partnership with Kores and a significantly strengthened balance sheet, we believe that Frontier is very well positioned to meet its objective of becoming the next major producer of separated rare earths outside of China."

Strategic Agreement
Under the terms of the revised strategic partnership agreement between Frontier and Kores (the "Strategic Agreement"), which was signed in October 2012, Kores has an option to increase its participation in Zandkopsdrift from its current 10% interest up to a 50% or equal interest with Frontier in Zandkopsdrift, together with a pro-rata off-take right and obligation for up to 50% of production from Zandkopsdrift. The exercise of this option is conditional on Kores arranging project finance for the entire Zandkopsdrift development on terms acceptable to Frontier in its absolute discretion, and on Kores committing to provide its pro

Why did the State owned South Korean Resources mining and investment company [KORES] choose Frontier as their "rare earth" supplier??

1) Frontier's flagship property had the right mix of rare earth elements to satisfy the needs of various Korean conglomerates that KORES is trying to strategically supply with critical raw materials. Both TREO and HREO

2) KORES was satisfied that Frontier's metallurgy and flowsheet could economically separate and process the elements/metals, something that could hamper many rare earth projects from moving forward.

3) Frontier is able to start production and separation sooner than any other junior at KORES disposal.

4) KORES was satisfied with Frontier's "basket price" of rare earth elements.....even in today's depressed market conditions.

5) KORES was satisfied with the preliminary economics of the PEA.....including the quick return of 54% IRR, the $1 billion CAPEX, and the robust Net Present Value and low OPEX of the project.

6) Frontier has enough proven resources to supply South Korea for the next 25 years, and extremely large exploration lands and targets to potentially add to the mine life down the road.

12-14-2012, 12:26 PM	#8152
pastarocket Willing to sell body for a few minutes on RS Join Date: Feb 2010 Location: Vancouver Posts: 10,661 Thanked 4,458 Times in 2,221 Posts Failed 699 Times in 223 Posts Member's Picture Albums	A big day for Frontier Rare Earth Resources Ltd (T.FRO). Korea Resources Corporation completes acquisition of a 10% interest in Frontier Rare Earths' Zandkopsdrift project for C$23.8 million Working Capital Following receipt of the payment from Kores Frontier's cash balance is approximately C$52 million. This is expected to be sufficient to fund the completion of a Preliminary Feasibility Study and a Definitive Feasibility Study at Zandkopsdrift, work on the Company's other proposed exploration and development programs and corporate overheads. Kores is also required to pay Frontier 10% of all operating costs and expenses related to Zandkopsdrift from July 2012 onwards, amounting to approximately C$0.4 million as of the end November 2012. The Company has NO debt. James Kenny, President and CEO of Frontier Rare Earths commented: "The acquisition by Kores of a 10% interest in Zandkopsdrift is a strong vote of confidence in both the potential of the Zandkopsdrift project and the management of Frontier. With our partnership with Kores and a significantly strengthened balance sheet, we believe that Frontier is very well positioned to meet its objective of becoming the next major producer of separated rare earths outside of China." Strategic Agreement Under the terms of the revised strategic partnership agreement between Frontier and Kores (the "Strategic Agreement"), which was signed in October 2012, Kores has an option to increase its participation in Zandkopsdrift from its current 10% interest up to a 50% or equal interest with Frontier in Zandkopsdrift, together with a pro-rata off-take right and obligation for up to 50% of production from Zandkopsdrift. The exercise of this option is conditional on Kores arranging project finance for the entire Zandkopsdrift development on terms acceptable to Frontier in its absolute discretion, and on Kores committing to provide its pro Why did the State owned South Korean Resources mining and investment company [KORES] choose Frontier as their "rare earth" supplier?? 1) Frontier's flagship property had the right mix of rare earth elements to satisfy the needs of various Korean conglomerates that KORES is trying to strategically supply with critical raw materials. Both TREO and HREO 2) KORES was satisfied that Frontier's metallurgy and flowsheet could economically separate and process the elements/metals, something that could hamper many rare earth projects from moving forward. 3) Frontier is able to start production and separation sooner than any other junior at KORES disposal. 4) KORES was satisfied with Frontier's "basket price" of rare earth elements.....even in today's depressed market conditions. 5) KORES was satisfied with the preliminary economics of the PEA.....including the quick return of 54% IRR, the $1 billion CAPEX, and the robust Net Present Value and low OPEX of the project. 6) Frontier has enough proven resources to supply South Korea for the next 25 years, and extremely large exploration lands and targets to potentially add to the mine life down the road. __________________ Go Canucks go!