TSXminer
A couple of the pennies I watch are already in trouble with the ABCP mess.
" ubject: Stockwatch: Tri Origin Exploration Ltd: Tri Origin Exploration catches ABCP flu
Tri Origin Exploration catches ABCP flu
Tri Origin Exploration Ltd (C:TOE)
Shares Issued 49,056,641
Last Close 8/31/2007 $0.70
Tuesday September 04 2007 - News Release
Dr. Robert Valliant reports
FINANCIAL INVESTMENT UPDATE
Tri Origin Exploration Ltd. has been informed by National Bank Financial that investments made by NBF on behalf of TOE were exposed to the asset-backed commercial paper liquidity problem now being suffered by investment markets.
NBF informed TOE on Wednesday, Aug. 27, that the impact of recent disruptions in global credit markets has affected the $2,536,887 currently invested with NBF. TOE is currently investigating the implications of these events, which appear to be a result of the lack of liquidity for asset-backed securities of this type held by NBF rather than the creditworthiness of their underlying securities. TOE does not know when liquidity of these investments will be restored. At present, NBF has informed TOE that investments will be rolled over and interest will be compounded to the investment until a longer-term solution is arrived at or liquidity returns to the ABCP market.
TOE's current understanding is that there is significant risk that some of the original capital investment may be lost and/or that there may be a significant period of time before liquidity is restored to the ABCP market and investment funds can be redeemed. Management is working toward a resolution of the investment liquidity problem. As part of a short-term cash flow solution, TOE is working toward establishing a credit facility with National Bank backed by the investments. TOE is also investigating other solutions with the National Bank to provide access to working capital and limit TOE's future downside.
TOE has secure cash accounts to meet its corporate cash requirements on a continuing basis. Furthermore, in other investments, TOE holds 49 million shares of its Australian subsidiary Tri Origin Minerals. Tri Origin Minerals trades on the Australian Securities Exchange and the value of TOE's holding at Sept. 4 was $48.5-million.
The company remains in a strong asset and investment position and has more than adequate ability to meet its commitments and plans for growth.
© 2007 Canjex Publishing Ltd. "
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