EANS-News: Tantalus Rare Earths AG AND RHODIA SIGN LOI FOR TECHNICAL CO-OPERATION AND OFFTAKE FROM MADAGASCAR RARE EARTHS PROJECT
23.04.2012 – 10:02
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Contracts/LOI between Tantalus and Rhodia Düsseldorf (euro adhoc) - RHODIA AND TANTALUS SIGN LOI FOR TECHNICAL CO-OPERATION AND OFFTAKE FROM MADAGASCAR RARE EARTHS PROJECT (Lyon, FRANCE, Düsseldorf, GERMANY, April 23rd 2012); Rhodia, a member of the Solvay Group, and Tantalus Rare Earths AG are pleased to announce the signing of a Letter of Intent ("LOI") relating to technical cooperation for the development of an optimal process for generating rare earth concentrates from the large near surface Tantalus rare earth project in Madagascar and the exclusive supply of these rare earth products to Rhodia. The Tantalus project is emerging as one of the largest clay hosted rare earth resources outside of China, with 130Mt of rare earth bearing clays already identified from a small portion of the project area on the Ampasindava Peninsula in north-western Madagascar. Analysis of the Tantalus material has shown that approximately 20% of the rare earths are in the valuable "heavy" category. A definitive Technical Cooperation Agreement and Offtake Agreement for up to 15,000 tonnes per annum of rare earth products from Tantalus will follow the LOI. Tantalus CEO Mr David Rigoll said: "After discussions with all of the major participants in the rare earths processing and supply sector, we are pleased to have agreed terms with the world's number one producer of rare earth products Rhodia as our exclusive technical and marketing partner to assist in fast-tracking our Tantalus project to commercial production. Fréderic Carencotte, Industrial Director for Rhodia Rare Earth Systems, added: "This agreement represents a further step in our sourcing diversification strategy. The composition and nature of this deposit, i.e. ionic clays, seems very promising for reliable and competitive access to heavy rare earths." About Tantalus Rare Earths ("TRE") TRE is a German incorporated holding company whose subsidiaries are engaged in the exploration and development of rare earths. TRE's shares are quoted on the Open Market of the Frankfurt Stock Exchange. TRE's principal asset is an exploration project located in north-western Madagascar and comprises rare earth-tantalum-niobium-zirconium-hafnium enriched dykes and sills and Rare Earth Element ("REE") bearing Lateritic Clays derived from the weathering of underlying alkaline intrusives. There are numerous indications that most of the alkaline intrusive bodies within the concession are overlain by REE bearing Lateritic Clays. TRE is therefore considering the whole area underlain by alkaline intrusives (150 to 170 sq km) as prospective for secondary REE mineralisation in the weathering crust. The exploration programme aims to define the primary (vein/skarn hosted) and secondary (argillaceous Laterites) mineralisation present on the concession towards a JORC compliant mineral resource estimate and support a initiation of the staged technical and economic studies which could lead to mine development and production. Tantalus Rare Earths AG Berliner Allee 12 40212 Düsseldorf Deutschland Telephone: +49 (0) 211 52391 430 Fax: +49 (0) 211 52391 200 e-Mail: contact [at] tre-ag.com Internet: http://www.tre-ag.com Further inquiry note: For further information contact: Wolfgang Hampel, Chief Operating Officer Tel: +41 (0) 79 270 2095 Email: hampel@tre-ag.com David Rigoll, CEO Tel: +44 7500 068555 Email: rigoll@tre-ag.com Paul Weigh Blythe Weigh Communications Tel: +44 (0) 20 71383204 or +44 (0) 7989 129658 end of announcement euro adhoc -------------------------------------------------------------------------------- company: Tantalus Rare Earths AG Berliner Allee 12 D-40212 Düsseldorf phone: +49 (0)211 52391 430 FAX: +49 (0)211 52391 200 mail: contact [at] tre-ag.com WWW: http://www.tre-ag.com sector: Holding companies ISIN: DE000A0SMSL4, DE000A1KRQE7 indexes: stockmarkets: free trade/entry standard: Frankfurt language: English