Tom restructures assets (October 01, 2001)

Rouyn-Noranda, Que.-based Tom Exploration (TUM-M) has distributed to its shareholders 13.7 million shares of subsidiary Treegenic, a forestry biotechnology research firm.

The spinoff firmly dropped Tom’s shares back into the 40 range, following a strong rally that began in the 20 range in March and peaked above $1.30 in July when trading was halted for two months by the Montreal Exchange.

Tom has also concluded an agreement with sister company Loubel Exploration (LBX-M) to acquire a half-interest in the latter’s Temiscaming mineral properties in Quebec.

Tom is required to pay half the purchase cost of several of these properties and assume half of the exploration costs as well. Loubel already has a 100% interest in the Lyon property and an option to acquire a 100% interest in the Thundermin, Hinterland, Moneta and 9034-9473 Quebec Inc. properties.

In total, Tom will have to pay $237,500 and spend $687,500 on exploration.

Tom also intends to carry out exploration at its Jaculet and Laverlochere properties, both of which are in Quebec.

Looking for additional funding, Tom has filed an offering notice of a maximum of $977,000, with a price set at $100 per unit. Every unit includes 1,333 flow-through shares priced at 50 per share, 667 non-flow-through shares at 50 per share, and 2,000 warrants exercisable at 60 each.

At Sept. 13, the company’s cash holdings were $101,000, with working capital totalling $163,000.

At its annual meeting, the company elected the following slate of directors: Christian Dupont, Edouard Merette, Marc-Yvan Cote, Guy Cherpillod and Gilles Fiset.