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.
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
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
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
SOURCE FOREST GATE ENERGY INC.
For further information:
ROBERT KRAMBERGER, V-P, INVESTOR RELATIONS