SHARES OUTSTANDING: 142 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, June 2 /CNW Telbec/ - Forest Gate Resources Inc. ("Forest
Gate") reports that it has amended the financing terms previously announced in
a news release dated May 25, 2009.
In order to provide investors with much more favourable terms, the
amended financing shall be completed on a post consolidated basis which will
occur immediately following Forest Gate's AGM on June 23, 2009. Forest Gate's
management will also be participating in the financing.
Each Unit ("Unit") will consist of one common share ("Share") and one
common share purchase warrant ("Warrant") allowing the holder to subscribe for
one Share at a price of $0.20 for a period of two years from the subscription
date, the whole on a post-10 for 1 consolidation basis. The Units are being
offered at a price of $0.15 per Unit and subject to the terms and conditions
set forth in the subscription agreement.
The Units will be issued pursuant to applicable prospectus and
registration exemptions and will be subject to a four-month hold period.
Forest Gate may also pay commissions and finder's fees in connection with this
private placement, in accordance with the rules and regulations of the TSXV.
Also, Forest Gate reports that it has received conditional approval from
the TSX Venture Exchange to proceed with the Texas acquisition announced in a
news release dated May 12, 2009.
Forest Gate intends to utilize the proceeds from the private placement to
primarily finance its Texas operations and for general working capital. This
financing is subject to the usual regulatory approvals.
About Forest Gate Resources
Forest Gate is an international oil & gas exploration and production
company. It is seeking to increase shareholder value through participation and
development of oil & gas exploration and production projects in Canada and
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.
Among other things, the economic viability of these properties has not
been established and there is no guarantee that it will be. Accordingly,
Forest Gate gives no assurance nor makes any representations or warranty that
the expectations conveyed by the forward-looking statements will prove to be
correct and actual results may differ materially from those anticipated in the
forward looking statements. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties and should
not place undue reliance on such forward-looking statements. Forest Gate does
not undertake to publicly update or revise any forward-looking statements.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
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. This
transaction is subject to TSX Venture Exchange Approval.
For further information:
For further information: Robert Kramberger, V-P, Investor Relations,
1-866-666-3040, firstname.lastname@example.org, www.forestgate.ca