A planned reorganization would see Ayrex Resources (ASE) acquire exploration interests in Newfoundland and Labrador, and trade its present oil and mining interests for shares in parent Tandem Resources (ME).
The company plans to complete a 4-million-share private placement with a group of investors. Its assets (a producing oil property in Alberta and a gold property in northern Ontario) would be placed in a subsidiary company which would be traded to Tandem for 2 million shares over and above the 1.4 million Ayrex already owns.
Ayrex would then distribute its 3.4 million Tandem shares to its minority shareholders, with one Tandem share distributed for every two Ayrex shares held. Ayrex can then acquire a private Newfoundland company, New Lab Resources, by issuing one Ayrex share for each New Lab share it acquires.
Shareholders have yet to vote on the proposals.
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