Frontier Rare Earths jumps 10% on Korea talks
Frontier Rare Earths Limited (TSX: FRO) jumped 10% on Tuesday on higher than usual trading volumes, after the company said it is in advanced talks with Korea Resources Corporation – owned by the Asian nation's government – to expand a JV first signed last year.
By mid-morning was trading up just over 10% at $0.65 on the Toronto big board. The tightly held counter it now worth $57 million, but is still trading down more than 20% for 2012.
Frontier is advancing the Zandkopsdrift rare earth project in South Africa and in December sold 10% of the venture to Kores for $23.8 million.
Frontier announced Wednesday that Kores wants to further expand the deal and that its board will conclude negotiations this month.
Kores already has the option to acquire a further 10% interest in Zandkopsdrift and a 10% interest in Frontier following completion of a definitive feasibility study, which is expected end-2013.
These options, if exercised, would give Kores off-take rights for a total 31% of rare earth production from Zandkopsdrift.