Tantalus Rare Earths AG: Sale of 60% of operations
December 8, 2015 (Source: Tantalus Rare Earths AG) — Tantalus Rare Earths AG (Tantalus) is pleased to announce the signing of a sale and purchase agreement with the Singapore-based company Apphia Minerals SOF PTE. Ltd. (Apphia). Subject to the agreed conditions being fulfilled, Tantalus will sell 60% of the shares in Tantalus’ subsidiary Tantalum Holding (Mauritius) Limited (which is the 100% owner of Tantalum Rare Earth Malagasy S.A.R.L.) for a cash consideration of EUR 3.7 million.
A first EUR 350.000 tranche of the cash consideration was paid at the signing of the term sheet with Apphia in November 2015 and a second tranche of EUR 1.350.000 will be paid few days after the signing. The remaining EUR 2 million will be paid at the closing of the transaction, estimated to take place in the first quarter of 2016.
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Tantalus will withdraw its application for insolvency after the transfer of EUR 1.350.000 has taken place as the reasons for insolvency have been eliminated.
In addition, subject to certain operative milestones being reached Apphia has undertaken to procure not less than EUR 8 million of debt funding for the project in Madagascar.
As announced in company’s release on November 17 2015 the second stage of the contemplated transaction consist of the sale of the remaining 40% of the shares in Tantalus’ subsidiary Tantalum Holding (Mauritius) Limited to Apphia. The consideration for these shares will be paid in shares that Apphia holds in a company listed on the Singapore Stock Exchange (“Listed Company”), which shares will have a market value of not less than EUR 10 million at the time of the transaction. The agreement for the second phase of the transaction is expected to be signed at around mid-December 2015.
Tantalus will invite its shareholders to an extraordinary general meeting to decide on the arrangements with Apphia. The general meeting is expected to take place in late January 2016.
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.
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