Forest Gate Announces $600,000 Private Placement

    Shares outstanding: 142 Million

    MONTREAL, Aug. 26 /CNW Telbec/ - Forest Gate Resources Inc. (the
"Company") announces today that it will be undertaking a non-brokered private
placement, whereby the Company intends to raise up to $600,000 in Units (the
    Each Unit, priced at $0.05 per Unit, will consist of one common share and
one common share purchase warrant, (the "Units"). Each warrant will be
exercisable into one common share for a period of two years from closing at an
exercise price of $0.10 per share. The Units will be issued pursuant to
applicable prospectus and registration exemptions and will be subject to a
four-month hold period.
    It is anticipated that the financing will be completed on or around the
close of business on August 27, 2008. This financing is subject to the usual
regulatory approvals.
    The Company will pay, where appropriate, a cash finder's fee of 8% in
connection with the placement and issue finder's fee warrants equal up to 8%
of the total number of Units issued under the offering. Each finder's fee
warrant will entitle the holder to subscribe for Units of the Company at an
exercise price of $0.10 for a period of two years after issuance.
    The Company intends to utilize the proceeds from the private placement to
finance its commitment in acquiring the 7.5% working interest in the Celtic
Sea Oil & Gas Exploration License pursuant to the Joint Operating Agreement
("JOA") entered into with its Celtic Sea consortium partners.
    "With this financing, we will be able to pay the June 3, 2008 cash call
and amend our current default status with the Celtic Sea partners", said
Michael Judson, President and Chief Executive Officer of Forest Gate Resources
Inc. "Once again, our investors have given us a strong vote of confidence to
carry on with this important project."

    About the Company

    Forest Gate Resources Inc. is an international oil & gas exploration
company. The Company is seeking to increase shareholder value through
participation and development of oil & gas exploration and production projects
in Ireland and Canada. The Company's shares trade under the symbol FGT on the
TSX Venture Exchange.


    This news release contains certain forward-looking statements, including
statements regarding the business and anticipated financial performance of the
Company. These statements are subject to a number of risks and uncertainties.
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. The Company does not undertake to update any
forward looking statements, oral or written, made by itself or on its behalf.

    The TSX Venture Exchange has not reviewed nor does it accept
    responsibility for the adequacy or accuracy of this news release.

For further information:

For further information: Robert Kramberger, V-P, Investor Relations,

Organization Profile

Forest Gate Energy Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890