Shares outstanding: 122 Million
SYMBOL & EXCHANGE: FGT-V
MONTREAL, June 2 /CNW Telbec/ - Forest Gate Resources Inc. (the
"Company") announced today that it has completed its first closing of the
amended brokered private placement announced May 29, 2008 and has issued
2,222,221 Flow-Through Units at a price of $0.09 per Flow-Through Unit, and
16,111,430 Units at a price of $0.07 per Unit, for total gross proceeds of
$1,327,799.99. Conditional Acceptance to this private placement was issued by
the TSX Venture Exchange on May 29, 2008.
Northern Securities Inc. ("Northern") acted as lead underwriter for this
private placement, with a bought deal commitment provided by Northern
Financial Corporation. The revised terms of this private placement replaced
the terms of the brokered private placement previously announced on May 1,
Under the revised terms, each Flow-Through Unit consists of one common
share of the Company and one-half of one common share purchase warrant. Each
such whole warrant is exercisable into one common share for a period of two
years from closing at an exercise price of $0.10 per share. Each Unit consists
of one common share of the Company and one common share purchase warrant. Each
such warrant is exercisable into one common share for a period of two years
from closing at an exercise price of $0.10 per share.
The Flow-Through Units and Units were issued pursuant to applicable
prospectus and registration exemptions and the underlying common shares and
warrants are subject to a four-month hold period.
The Company also granted Northern an over-allotment option, exercisable
until the final closing to sell up to an additional 20% of the number of Units
and Flow-Through Units issued on the closings, at a price equal to the Unit
issue price and/or Flow-Through Unit issue price respectively.
In connection with the offering Northern received a commission of 8% of
the aggregate gross proceeds of the Offering, payable at closing. In addition,
Northern received a work fee of $20,000 and was issued broker warrants equal
to 10% of the number of Units and Flow-Through Units sold pursuant to the
offering. Each broker warrant is exercisable into one Unit at the Unit issue
price at any time prior to the date that is 24 months from closing.
The Company intends to utilize the proceeds from the private placement
for general working capital purposes and its ongoing projects in Canada.
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,
1-866-666-3040, email@example.com, www.forestgate.ca