Facebook Paper, their rumored magazine-style news aggregate, is said to be launching later this month. Sources familiar with the plan suggest it will mimic Flipboard’s layout, bringing data from your News Feed. Though Facebook has refused comment, all signs point to a nearly complete project.

The Paper project is said to be headed by Chris Cox, Facebook’s VP of products. According to reports, Cox has made Paper his pet project, and has focussed quite a bit of resources at it. Essentially, Paper will take your news feed fodder and break it down to a more approachable format. Though Flipboard’s style is said to be the starting point for whatever Facebook has up their sleeve, there is no word on what the final layout could be.

Paper has been in the works for years, falling onto the back burner when Facebook decided to revamp News Feed as part of Project Reader. The project fragmented the News Feed utilities, like Paper, into separate entities rather than a focussed effort, according to reports. From there, it’s believed Facebook decided on Paper as their focal point. We believe it oddly coincides with face books other efforts, like a push toward HTML5 and mobile.

Paper is said to do two important things for Facebook. One, it is aimed at engaging users on a deeper level, bringing them to Facebook rather than other services. From there, Facebook can do what any sensible company wold do with a service like Paper, and sell advertising space. Though all innuendo at this point, it’s plausible to think Facebook will bring a reader of some sort to the fold. We’ll also expect mobile versions of whatever Facebook has planned as well. Whether later this month or a later time altogether, something to accompany Facebook’s News Feed is likely, and smart.