Press release from CNW Group
Frontier Rare Earths Provides an Update on its Kores Joint Venture
Tuesday, November 27, 2012
Frontier Rare Earths Provides an Update on its Kores Joint Venture08:44 EST Tuesday, November 27, 2012TORONTO, Nov. 27, 2012 /CNW/ -Frontier Rare Earths Limited (TSX: FRO) ("Frontier" or the "Company") is pleased to provide an update on the status of its strategic partnership agreement with Korea Resources Corporation ("Kores"), the Korean Government-owned mining and natural resource investment company.On 23 October, 2012 Frontier announced a significant broadening of the scope of its strategic partnership agreement with Kores (the "Agreement"). Under the Agreement, Kores acquired an initial 10% interest in Zandkopsdrift, along with an off-take right and obligation for 10% of rare earth production from Zandkopsdrift, for a cash consideration of C$23.8m for which payment is due on November 30, 2012. At the request of Kores the payment due date has been changed and is now 14 December, 2012. There are no other changes to the Agreement.Further information and details on the Agreement is available in the Company's news release dated October 23, 2012 (http://www.frontierrareearths.com/media-cover/frontier-news)About Frontier Rare Earths Limited (TSX: FRO): Frontier Rare Earths Limited (www.frontierrareearths.com) is a mineral exploration and development company principally focused on the development of rare earths projects in Africa. Frontier's flagship asset is the Zandkopsdrift rare earth project, which is located in the Northern Cape Province of South Africa and is one of the largest, highest grade undeveloped rare earth deposits worldwide. Frontier has a direct 74% interest and a 95% economic interest in Zandkopsdrift prior to the acquisition by its strategic Partner Korea Resources Corporation of an initial 10% interest in Zandkopsdrift. In March 2012 Frontier filed a Preliminary Economic Assessment ("PEA") on the Zandkopsdrift project prepared in accordance with National Instrument 43-101. The results of the PEA indicate that the proposed development of the Zandkopsdrift Project is both technically feasible and economically robust with a low risk profile. In conjunction with the PEA a mineral resource estimate for Zandkopsdrift confirmed 42.5m tonnes at an average grade of 2.23% containing approximately 940,000 tonnes total rare earth oxides (applying a 1% cut-off) and with 78% of the mineral resource in the indicated category. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Fiona Harper, Pr.Sci.Nat, was the independent qualified person from Venmyn Rand (Pty) Ltd responsible for the PEA.Frontier is listed on the main board of the Toronto Stock Exchange and currently has 89,562,781 shares outstanding. Frontier is well funded, with approximately $29m cash (excluding $23.8m to be received from Kores under the Agreement in December 2012) and no debt, and this strong working capital position is expected to be sufficient to finance the proposed work program of the Company and the completion of a Preliminary Feasibility Study and a Definitive Feasibility Study for Zandkopsdrift.Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Readers can identify many of these statements by looking for words such as "will", "intends", "projects", "anticipates", "estimates", "achieving", or similar words or the negative thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, commodity prices, availability of financing for the Company and the Company's ability to raise additional capital, results of feasibility studies, dependence upon regulatory approvals, the estimation of mineral resources and the realization of mineral reserves based on mineral resource estimates and estimated future development, if any, and possible variations of ore grade or recovery rates; the Company development, if any, and possible expectations regarding competition from other producers globally, possible customer and supplier relationships, anticipated trends and challenges in the Company regarding competition; mineral resource estimates and supply outlook and growth opportunities, the future price of and future demand for rare earth elements, title disputes or claims including Black Economic Empowerment initiatives, and the timing and possible outcome of pending regulatory and permitting matters.Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Actual results may differ materially from those anticipated. Readers are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Frontier disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.SOURCE: Frontier Rare Earths Ltd.For further information: on Frontier visit www.frontierrareearths.com, e-mail the Company at IR@frontierrareearths.com or contact +352 208 80249.