Tasman Metals Ltd.and Flinders Resources Ltd.have agreed in principle to merge and create a new entity to be called Kinetic MaterialsCorp., according to a May 11 release.
The companies terminateda potential merger in May 2014 to focus on developing their respective projects,but now the boards of both firms believe these operations have been significantlyadvanced.
Flinders has developedthe Woxna flakegraphite deposit, with the fully permitted project on production-ready status, whileTasman completed a preliminary feasibilitystudy for the Norra Karrheavy rare earth element property in 2015. Both projects are in Sweden.
Should the planned merger proceed, Flinders will acquire theentire share capital of Tasman on the basis of 0.5 of a Flinders share for eachTasman share held.
Flinders' President and CEO Blair Way will continue in the sameroles at Kinetic while Mark Saxon, Tasman's president and CEO, will be appointedas executive director for strategy and technology. The remaining boardmembers will be determined at a later date.
The combined entity "will focus on the development and permittingfor high purity spherical graphite production at Woxna, product development forthe array of critical metals and materials available at Norra Karr, and the acquisitionof aligned projects and technologies," Way said in the statement.
The potential merger is subject to certain conditions, includinga binding definitive agreement.