Tantalus Rare Earths AG: Status of rights issue
02.07.2015 | DGAP
Grünwald, Germany, 2 July 2015 - As announced on 30 April 2015, the Company had received subscriptions for all 1,038,045 new shares resulting from the capital increase resolved by the Management Board with the consent of the Supervisory Board on 25 March 2015 from national and international investors. Existing shareholders subscribed for 109,226 shares during the offer period and 16 new investors subscribed for 928,819 new shares during the subsequent private placement.In addition to the payments resulting from the subscription tranche, the Company received payments in a total amount of EUR 1,430,552 from 15 new investors subscribing 178,819 new shares. These subscriptions were registered in two tranches with the Commercial Register on 17 and 25 June 2015. Together with the payments received from the 109,226 new shares subscribed by existing shareholders during the offer period of EUR 873,808 the Company generated proceeds of EUR 2,304,369. As of 1 July 2015 the Company's total amount of shares has increased from 3,114,136 shares to 3,402,181 shares.
One of the 16 investors, a reputable investment company located in Luxembourg, has provided the Company with a subscription deed signed on 25 April 2015 containing the subscription of 750,000 new shares. But the respective payment of EUR 6 million has not been made until 30 June 2015.
According to the investor the reasons for the delay in paying the subscription fee are of technical nature and the investor continues to work to complete the payment. Save for the delay the Company has no reason to doubt investor's intention to pay the subscription fee, however, the Company cannot be sure to receive the payment from the investor.
The Company will publish an update relating to the progress with the investor latest on Wednesday 8 July 2015.
Background
The Tantalus group is currently undergoing a transitional phase from an exploration company to a raw material exploitation and production company in its rare earth project in Madagascar. With the release of a NI 43-101 compliant report from experts at SGS, Tantalus has largely completed the ongoing exploration work from 2008-2014 and since then it has been preparing for setting up of pilot production. The commencement of commercial production is targeted for end of 2016 provided that the appropriate mining license has been granted.
About Tantalus Rare Earths AG
Tantalus Rare Earths AG (ISIN DE000A1MMFF4) is a Germany-based exploration company, engaged in the development of rare earths in Madagascar. Tantalus's shares are quoted on the 'Primärmarkt' of the Düsseldorf Stock Exchange.
For further information please visit our website www.tre-ag.com or contact:
Thomas Hoyer, CEO, Tantalus Rare Earths AG
Tel.: + 49 1512 4017229
Thomas.hoyer@tre-ag.com
Markus Kivimäki, EVP, Tantalus Rare Earths AG
Tel.: +358 503495687
Markus.kivimaki@tre-ag.com
German media contact:
rikutis consulting
Falk v. Kriegsheim
Tel.: +49 172 9837109
London media contact:
Bell Pottinger
Charles Vivian
Marianna Bowes
Tel.: +44 (0)20 3772 2500