Forest Gate Closes Brokered Private Placement



    SHARES OUTSTANDING: 142 Million
    SYMBOL & EXCHANGE: FGT-V

    MONTREAL, June 27 /CNW Telbec/ - Forest Gate Resources Inc. (the
"Company") announced today that it has completed its second closing of the
amended brokered private placement announced May 29, 2008 and has issued
1,378,112 Flow-Through Units at a price of $0.09 per Flow-Through Unit, and
850,000 Units at a price of $0.07 per Unit, for total gross proceeds of
$183,530.08. 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,
2008.
    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.
    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.
    In other news, the company wishes to announce the departure of Jacques
Arsenault, its V-P, Finance. "Although Jacques has elected to move on to other
opportunities, he will continue to offer his astute services to Forest Gate in
the interim," says Michael Judson, President of Forest Gate Resources. "His
dedication and commitment to the success of the company has been truly
appreciated. We wish him well in his future endeavors."

    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.

    FORWARD-LOOKING STATEMENTS

    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, rkramberger@forestgate.ca; www.forestgate.ca

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