SHARES OUTSTANDING: 119 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Feb. 11 /CNW Telbec/ - Forest Gate Resources Inc. announces
today that it will be undertaking a non-brokered private placement whereby the
Company intends to raise up to $1,000,000 in units at a price of $0.13 per
unit (the "Units"). The Units will be issued pursuant to applicable prospectus
and registration exemptions and will be subject to a four-month hold period.
Each Unit is comprised of one common share and one common share purchase
warrant of the Company. Each share purchase warrant will entitle the holder to
purchase one additional common share of the Company at a price of $0.17 per
share for a period of two years after issuance.
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 $0.13 for a period of two years after issuance.
The Company intends to utilize the proceeds from the private placement
for general working capital purposes.
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 discussion of items that may constitute
forward-looking statements within the meaning of securities laws that involve
risks and uncertainties. Although the company believes the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from expectations
include the effects of general economic conditions, actions by government
authorities, uncertainties associated with contract negotiations, additional
financing requirements, market acceptance of the Company's products and
competitive pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
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, firstname.lastname@example.org, www.forestgate.ca