TransactionsCassels Brock Acts for Frontier Rare Earths Limited in Its Acceleration of the Development of Its Zandkopsdrift Project Through a Strategic Partnership with Korea Resources CorporationPublished: 01/10/2012 By Jennifer Hansen, Jay F. King Frontier Rare Earths Limited (“Frontier”) announced on December 5, 2011, the signing of a definitive agreement with the Korean Government-owned mining and natural resources investment company, Korea Resources Corporation (“KORES”), to form a strategic partnership designed to accelerate the development of Frontier's Zandkopsdrift rare earth project (“Zandkopsdrift”) in South Africa. The definitive agreement involves an investment in both Zandkopsdrift and Frontier and an off-take arrangement that could commit up to 31% of future production. Under the terms of the agreement, the KORES consortium will acquire an initial 10% interest in Zandkopsdrift and with such acquisition secure off-take rights for 10% of rare earth production from Zandkopsdrift. The agreement provides that the KORES consortium can also acquire a further 10% interest in Zandkopsdrift and up to a 10% share ownership of Frontier, which, if acquired, would give Kores off-take rights for an additional 21% of rare earth production from Zandkopsdrift. The definitive agreement follows the heads of agreement signed by Frontier and KORES in July 2011. Cassels Brock acted for Frontier with a team that included Jay King (Securities and Mining) and Jennifer Hansen (Securities). |