July 13 (Bloomberg) -- Frontier Rare Earths Ltd. said it signed an initial agreement with Korea Resources Corp. to develop the company’s rare-earths project in South Africa.
Under the heads of agreement, state-owned Korea Resources may acquire as much as 20 percent of the Zandkopsdrift rare- earths project, up to 40 percent of its production and a stake of as much as 10 percent in Frontier, the company said in a statement from Toronto today. It gave no financial terms.
A binding agreement with the South Korean company to develop the project in South Africa’s Northern Cape province, including financial and technical assistance, is expected in the fourth quarter, Frontier said. Talks with other potential partners continue, it said.
“Rare earths are a critical raw material needed to support Korea’s high technology industry and future economic growth,” Korea Resources Chief Executive Officer Shin-Jong Kim said in the statement.
Rare earths are used in sonar systems, lasers, flat-screen televisions and hybrid cars.
#<876750.2844822.214.171.124.23378.96># -0- Jul/13/2011 09:23 GMT
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