(Ecofin Agency) - Tantalus Rare Earths AG, German company with assets on a rare earths project in North-East Madagascar, revealed on 4^th September going through a difficult financial situation, in connection with the mobilisation of resources for this project.

It attributed this situation to the default of one investor who acquired an important number of shares, 750,000 new shares for 6 million Euros, and who did not follow through with its commitments at the term of the operation, as part of company’s capital increase at the beginning of the year.

The German company, which had already concluded off-taking agreements for the production which is scheduled to begin around end 2016, said that it had started discussions with partners for the financing of the project which could be finalised during September.

The funds currently available are sufficient, it clarified, to continue activities until beginning October in the project containing 560,000 tons of measured, indicated, and inferred oxide resources.

Tantalus Rare Earths holds 100% of the rare earths project located in a concession covering 300 km2 in eastern half of the Ampasindava peninsula in Antsiranana province.