Forest Gate Closes First Tranche of Financing
June 30 2011 - 4:14PM
PR Newswire (Canada)
CALGARY, June 30, 2011 /CNW/ -- SYMBOL & EXCHANGE: FGE-V
CALGARY, June 30, 2011 /CNW Telbec/ - Forest Gate Energy Inc.
(TSXV: FGE) reports that it has completed a first tranche of its
previously-announced private placement (see press release dated
June 20, 2011) by issuing an aggregate of 147 mineral flow through
units (the "Units") at an issue price of one thousand, two hundred
dollars ($1,200) per Unit for gross proceeds to Forest Gate of
$176,400. Each Unit consists of 4,000 common shares with a deemed
issue price per share of six cents ($0.06), 16,000 "flow-through"
common shares with a deemed issue price per share of six cents
($0.06), and 8,000 common share purchase warrants entitling the
holder to acquire one additional common share at an exercise price
of twelve cents ($0.12) for a period of two years. The Units will
be subject to a four-month hold period. Proceeds will primarily be
used to incur eligible expenditures on Forest Gate's 100% owned
Pershing Gold Property located near Val d'Or, Quebec, as well as
for general working capital. As a result of this private placement,
there are 68,408,964 common shares of Forest Gate issued and
outstanding. In connection with the closing of the private
placement, Forest Gate paid a 10% cash commission of $17,640.
Forest Gate also issued 294,000 Broker Warrants representing 10% of
the number of Units sold in the private placement. Each
Broker Warrant is exercisable into one common share of the
Corporation at a price of $0.06, until June 30, 2013. All of the
securities issued in connection with the private placement are
subject to a four month hold period expiring on October 31, 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. 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/June2011/30/c2786.html p
align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/
1-866-666-3040br/ a
href="mailto:RKRAMBERGER@FORESTGATE.CA"RKRAMBERGER@FORESTGATE.CA/abr/
a href="http://WWW.FORESTGATE.CA"WWW.FORESTGATE.CA/a /p
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