(Ecofin Agency) - Tantalus Rare Earths AG, operating a rare earths project in North-East Madagascar raised funds to the tune of €2.304 million through its fund raising plan which was subscribed to by fifteen investors for 178,819 new shares issued at a value of €1.430 million.

This takes place at the stage of its transition, from prospecting to mining and production company, on its rare earths project projected to have 560,000 metric tons of assessed, expected and inferred oxide.

Tantalus Rare Earths owns full rights to the rare earths site located in a mining concession covering 300 km2 in the eastern half of the Ampasindava peninsula in the Antsiranana province.

Based on a production rate of 10,000 metric tons per year, Tantalus estimated the mining life of this project to be 50 years, with the German company ThyssenKrupp set to purchase 30% of the annual rare earths oxide production, equivalent to approximately 3,000 metric tons at full production.

Last May, Tantalus Rare Earths AG, forecasting the start of commercial production towards end 2016, signed a 10 year off-take agreement with ThyssenKrupp.