The Conversation (0)
- WORLD EDITIONAustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Diversified Critical Metals Company on the Horizon: Flinders and Tasman Metals Announce Possible Merger Plans
Dec. 12, 2013 11:00AM PST
Battery MetalsFlinders Resources and Tasman Metals could become the next diversified critical metals company.
What happens when you take two Europe-focused critical metals companies like Flinders Resources (TSXV:FDR) and Tasman Metals (TSX:TSM) and merge them together?
You get a diversified critical metals company with the potential to supply Europe’s high-growth technology sector with the materials it needs.
The players
Graphite investors might be familiar with Flinders Resources’ Woxna brownstone graphite project in Central Sweden. Woxna is a fully permitted past-producing mine with a processing plant capable of 100,000 tons per annum and a mine capable of producing 10,000 tons of high-quality graphite per year. In mid-November, Flinders’ board approved the company’s production plan for Woxna, bringing the project one step closer to production and the company one step closer to being the first public company to produce graphite on a commercial scale. Flinders is aiming for flake graphite production by the end of Q3 2014.
Critical metals investors are certainly familiar with Tasman Metals, a company focused on developing strategic metals targets like its flagship rare earth project, Norra Kärr, located in Southern Sweden. The company also has a few other rare earth projects on the go, and recently acquired several tungsten projects — also in Sweden — including Yxsjöberg, the former largest tungsten-producing project in Northern Europe.
The merger
Both companies announced today that preliminary negotiations relating to a possible merger are taking place. Under the terms being considered, Tasman may acquire all the outstanding common shares of Flinders for consideration of common shares of Tasman on a to-be-determined share exchange ratio. To date, the companies have not hammered out all the details; however, they have stated that “[t]he Potential Merger is subject to a range of conditions, including, but not limited to, an agreement between Flinders and Tasman on the appropriate Ratio based on the guidance of their respective financial advisors, and Tasman and Flinders entering into a binding definitive agreement containing customary terms, including representations and warranties, as are standard in a transaction of this nature.”
Commenting for Tasman Metals, CEO Mark Saxon stated that “[t]he contemplated merger of Tasman and Flinders would bring together a portfolio of assets that fits very well with the needs of European industry.” He believes the unique nature and excellent potential of the Nordic rare earth, tungsten and graphite assets speak for themselves. “We believe the proposed business combination will assist in our goal to become the “supplier of choice” for secure and ethically sourced critical materials to Europe,” he said.
Echoing the positive sentiment, Flinders CEO Blair Way said in a company statement, “[w]e believe Flinders’ near term cash flow, project development and operational expertise can support the next stages of Tasman’s growth, while the addition of a major asset like Norra Kärr would provide Flinders’ shareholders with exposure to another significant critical metal asset. The proposed combined company has the opportunity to become a sector leader, with potential to grow by adding aligned assets to this larger critical metal business.”
Tasman and Flinders will keep investors appraised of any further information about the potential merger, and stress that no definitive agreement has yet been reached.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
You get a diversified critical metals company with the potential to supply Europe’s high-growth technology sector with the materials it needs.
The players
Graphite investors might be familiar with Flinders Resources’ Woxna brownstone graphite project in Central Sweden. Woxna is a fully permitted past-producing mine with a processing plant capable of 100,000 tons per annum and a mine capable of producing 10,000 tons of high-quality graphite per year. In mid-November, Flinders’ board approved the company’s production plan for Woxna, bringing the project one step closer to production and the company one step closer to being the first public company to produce graphite on a commercial scale. Flinders is aiming for flake graphite production by the end of Q3 2014.
Critical metals investors are certainly familiar with Tasman Metals, a company focused on developing strategic metals targets like its flagship rare earth project, Norra Kärr, located in Southern Sweden. The company also has a few other rare earth projects on the go, and recently acquired several tungsten projects — also in Sweden — including Yxsjöberg, the former largest tungsten-producing project in Northern Europe.
The merger
Both companies announced today that preliminary negotiations relating to a possible merger are taking place. Under the terms being considered, Tasman may acquire all the outstanding common shares of Flinders for consideration of common shares of Tasman on a to-be-determined share exchange ratio. To date, the companies have not hammered out all the details; however, they have stated that “[t]he Potential Merger is subject to a range of conditions, including, but not limited to, an agreement between Flinders and Tasman on the appropriate Ratio based on the guidance of their respective financial advisors, and Tasman and Flinders entering into a binding definitive agreement containing customary terms, including representations and warranties, as are standard in a transaction of this nature.”
Commenting for Tasman Metals, CEO Mark Saxon stated that “[t]he contemplated merger of Tasman and Flinders would bring together a portfolio of assets that fits very well with the needs of European industry.” He believes the unique nature and excellent potential of the Nordic rare earth, tungsten and graphite assets speak for themselves. “We believe the proposed business combination will assist in our goal to become the “supplier of choice” for secure and ethically sourced critical materials to Europe,” he said.
Echoing the positive sentiment, Flinders CEO Blair Way said in a company statement, “[w]e believe Flinders’ near term cash flow, project development and operational expertise can support the next stages of Tasman’s growth, while the addition of a major asset like Norra Kärr would provide Flinders’ shareholders with exposure to another significant critical metal asset. The proposed combined company has the opportunity to become a sector leader, with potential to grow by adding aligned assets to this larger critical metal business.”
Tasman and Flinders will keep investors appraised of any further information about the potential merger, and stress that no definitive agreement has yet been reached.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.