Tasman Metals, Flinders Resources Agree To Merge - Quick Facts

(RTTNews) - Tasman Metals Ltd. (TSM.V, TASIF) and Flinders Resources Limited (FDR.V) said that the two companies have agreed in principle to complete a merger. They have proposed that the combined company, should the potential merger be successful, be known as Kinetic Materials Corp.

If Flinders and Tasman decide to proceed with the proposed merger, it is currently proposed that Flinders will acquire under a statutory plan of arrangement 100 percent of the outstanding common shares of Tasman based on an exchange ratio of 0.5 of a Flinders' share for each Tasman share. Tasman's outstanding options and warrants will be adjusted in accordance with their terms.

The potential merger will consolidate Flinders' and Tasman's key assets and technologies in the critical metals arena. Substantial overlap exists between rare earth element or REE and graphite customers, and both materials are considered "critical" by the European Commission.

Flinders' President and CEO Blair Way will take on the role of President and CEO of Kinetic. Mark Saxon, Tasman's President and CEO, will assume the role of Executive Director - Strategy and Technology. The remaining board composition will be determined at a later date.

The potential merger is subject to a range of conditions, including Tasman and Flinders entering into a binding definitive agreement containing customary terms. The two companies said they will issue further information about the potential merger in the near future.