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Flinders Resources Limited (TSXV:FDR) and Tasman Metals Ltd. announced that discussions with regard to a potential merger of the two companies have resulted in an agreement in principle to complete a merger.
Flinders Resources Limited (TSXV:FDR) and Tasman Metals Ltd. announced that discussions with regard to a potential merger of the two companies have resulted in an agreement in principle to complete a merger. It is proposed that the combined company, should the Potential Merger be successful, be known as Kinetic Materials Corporation.
As quoted in the press release:
The Potential Merger will consolidate Flinders’ and Tasman’s key assets and technologies in the critical metals arena and bring together a management and board team with deep experience in the discovery, development and marketing of these materials. It is believed that the experience of the team in the rare earth element (“REE“) and graphite sectors will provide insight into where best to position the Combined Company to gain access to these emerging markets. Substantial overlap exists between REE and graphite customers, and both materials are considered “critical” by the European Commission under the DG Growth “Raw Materials Initiative”.
The management teams of Flinders and Tasman believe that with the current “once in a generation” transition to a low-carbon economy, a shift in the material requirements of energy generation is occurring and the need for new materials is accelerating. It is anticipated that a merged entity will provide a larger market presence and deliver operational efficiency through shared technological, logistical, administrative and marketing activities. A merger of Tasman and Flinders would combine advanced assets to make a well-balanced and secure company, while strengthening the voice of the Combined Company and allowing for greater access to research, capital markets and customers.
With extensive experience in mine development and operations, Flinders’ President and CEO Mr. Blair Way will take on the role of President and CEO of Kinetic. Mr. Mark Saxon, Tasman’s President and CEO, will assume the role of Executive Director – Strategy and Technology, and continue to provide his wealth of knowledge in the critical metals space. The remaining board composition will be determined at a later date.
Flinders Resources President and CEO, Blair Way, stated:
The combination of Flinders and Tasman to form Kinetic can provide Europe with a potential sustainable supplier of the raw materials required for the low-carbon energy generation and storage. Should the merger proceed, it is anticipated the Combined Company will focus on the development and permitting for high purity spherical graphite production at Woxna, product development for the array of critical metals and materials available at Norra Karr, and the acquisition of aligned projects and technologies. With rare earth element prices remaining subdued, expenditure on REE processing at Norra Karr will be on an as needed basis, however processing research with the financial support of the European Commission funded EURARE project shall continue.
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