Forest Gate Closes $441,750 Financing
April 11 2011 - 2:38PM
PR Newswire (Canada)
MONTREAL, April 11 /CNW/ -- SYMBOL & EXCHANGE: FGE-V MONTREAL,
April 11 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports
that it has completed its previously-announced private placement
(see press release dated March 29, 2011) by issuing an aggregate of
4,015,909 units (the "Units") at an issue price of eleven cents
($0.11) per Unit to two accredited investors resident in Ontario
and Quebec, for gross proceeds to Forest Gate of $441,750. Each
Unit consists of one common share in the capital of Forest Gate
issued on a "flow-through" basis with a deemed issue price per
share of eleven cents ($0.11), and one common share purchase
warrant entitling the holder to acquire one additional common share
of Forest Gate at an exercise price of eighteen cents ($0.18) for a
period of two years. Part of the placement, namely 2,090,909 Units,
was subscribed by one limited partnership associated with the
MineralFields Group of Toronto, Ontario. Forest Gate will use the
proceeds from the issuance of the Units to explore its 100% owned
Pershing Gold Property located near Val-d'Or, Québec. As a result
of this private placement, there are 59,281,064 common shares of
Forest Gate issued and outstanding. In connection with the closing
of the private placement, Forest Gate paid a cash finder's fee of
$11,500 to Limited Market Dealer Inc., representing 5% of the gross
proceeds raised from the MineralFields Group. Forest Gate
also issued compensation options to Limited Market Dealer Inc. to
purchase up to 209,090 units representing 10 % of the number
of Units sold to the MineralFields Group in the private
placement. The compensation options are exercisable at a
price of $0.11 per unit until April 11, 2013. The units to be
issued under the compensation options will have the same terms as
the Units issued in the private placement, except that none of the
shares will be "flow-through" shares. All of the securities issued
in connection with the private placement are subject to a four
month hold period expiring on August 12, 2011. About Forest Gate
Forest Gate Energy Inc. is a publicly listed oil and gas
exploration and production, and non-energy resource company trading
on the TSX Venture Exchange under the symbol FGE. The Company is
seeking to increase shareholder value through participation and
development of energy and other resources in Canada and
internationally. About MineralFields, Pathway and First Canadian
Securities ® MineralFields Group (a division of Pathway Asset
Management), based in Toronto, Vancouver, Montreal and Calgary, is
a mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships
to investors throughout Canada as well as hard-dollar resource
limited partnerships to investors throughout the world. Pathway
Asset Management also specializes in the manufacturing and
distribution of structured products and mutual funds (including the
Pathway Multi Series Funds Inc. corporate-class mutual fund
series). Information about MineralFields Group is available at
www.mineralfields.com. First Canadian Securities ® (a division of
Limited Market Dealer Inc.) is active in leading resource
financings (both flow-through and hard dollar PIPE financings) on
competitive, effective and service-friendly terms, and offers
investment banking, mergers and acquisitions, and mining industry
consulting, services to resource companies. MineralFields and
Pathway have financed several hundred mining and oil and gas
exploration companies to date through First Canadian Securities ®.
FORWARD-LOOKING STATEMENTS Certain statements regarding Forest
Gate, including management's assessments of future plans and
operations and Forest Gate's anticipated financial performance, may
constitute forward-looking statements under applicable securities
laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Forest Gate's control.
These risks may cause actual financial and operating results,
performance, levels of activity and achievements to differ
materially from those expressed in, or implied by, such
forward-looking statements. Such factors include, but are not
limited to: the impact of general economic conditions in Canada and
the United States; industry conditions including changes in laws
and regulations including adoption of new environmental laws and
regulations, and changes in how they are interpreted and enforced;
competition; the lack of availability of qualified personnel;
fluctuations in commodity prices; the results of exploration and
development drilling and related activities; imprecision in reserve
estimates; the production and growth potential of Forest Gate's
various assets; fluctuations in foreign exchange or interest rates;
the ability to access sufficient capital from internal and external
sources; and obtaining required approvals of regulatory
authorities. Neither TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
the accuracy of this release. To view this news release in HTML
formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/April2011/11/c3170.html p
align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/
1-866-666-3040br/ ua href="mailto:rkramberger@forestgate.ca"
cr="true"RKRAMBERGER@FORESTGATE.CA/a/ubr/ ua
href="http://www.forestgate.ca" cr="true"WWW.FORESTGATE.C/a/uua
href="http://www.forestgate.ca" cr="true"A/a/u /p
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