SHARES OUTSTANDING: 123 Million
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Feb. 29 /CNW Telbec/ - Forest Gate Resources Inc. ("Forest
Gate" or the "Company") is pleased to announce that it has closed the first
tranche of its non-brokered private placement which was announced in a news
release dated February 11, 2008. Conditional consent to this private placement
was issued by the TSX Venture Exchange on Tuesday, February 26, 2008.
In the first tranche, the Company has issued 3,862,000 units at a price
of $0.13 per unit, for total gross proceeds of $502,060. Each Unit is
comprised of one common share and one common share purchase warrant of the
Company, with a hold period expiring June 29, 2008. 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 with an expiry date of February 28,
At closing, the Company paid a finder's fee of the following:
(i) a cash finder's fee of $37,564.80.
(ii) 288,960 finder's fee warrants. Each finder's fee warrant entitles
the holder to purchase one Unit of the Corporation at a price of
$0.13 until February 28, 2010.
The Company expects to close an additional tranche shortly.
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 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