The game is called Forge, and uses bits of information that have been revealed by Loom's creator, Brian Moriarty, over the years. The game follows the blacksmith Rusty Nailbender, and uses a new magical item to conduct spells, the Blacksmith Guantlets, rather than the weaver's distaff. It uses a graphical style similar to the 256 colour art of the Loom PC CD and FM-Towns versions, and is created using the Adventure Game Studio engine.If that sounds like something that's of interest to you, then you can pick it up for free over at the Forge homepage.
Fans of Loom have been waiting for the sequel to Loom for decades. Luckily, some creative Loom fans have decided to stop waiting for an official sequel and have created one of their own.