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In a statement today, the two juniors said they had slightly amended the offer.
Tomahawk is still offering six of its shares for every 10 shares in K2, however it now proposes to exchange one option for every two K2 options, instead of the previous three-for-seven arrangement.
Under the merger, Tomahawk plans to issue a total of 51.6 million shares and about 28 million options to K2 investors.
K2 is recommending its shareholders accept the offer in the absence of a superior proposal.
Tomahawk has previously said the deal would “unlock significant shareholder value”.
“It is our view that the next phase for smaller players in the sector will be one of consolidation and it is our intention for Tomahawk to be an active participant in that process,” chairman Tony Brennan said.
“This first step is a major development for us, as it brings together all the pieces required to build a successful company.”
Tomahawk’s bidder’s statement and K2’s target’s statement are now expected to be released in mid-April.
K2 listed on the ASX in March after raising about $12 million to invest in oil and gas drilling projects in Texas, Michigan, Louisiana, Illinois and Alabama.
