(Ecofin Agency) - Tantalus Rare Earths AG, mining company listed on the Düsseldorf Stock Exchange, will raise €6 million, by issuing 750,000 new shares, to support its rare earths project in North-East Madagascar.

On 8^th July, the company disclosed having appointed Doonberg Capital Ltd as financial advisor who will also assist them in financial packaging for this project where Tantalus has signed a ten-year off-take contract with the German company ThyssenKrupp.

Tantalus Rare Earths AG aims to finalise the financing latest by the end of August, in order to start production by mid-2016.

The project covers 300km2 in the Eastern half of the Ampasindava peninsula in the province of Antsiranana.

According to the offtake contract terms, ThyssenKrupp will purchase every year 30% of the production, being 3,000 metric tons when it reaches full production.