SYMBOL & EXCHANGE: FGE-V
CALGARY, April 26, 2012 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that it has completed a private placement by issuing an aggregate of 35 flow-through units at a price of $1,000 per unit for gross proceeds to Forest Gate of $35,000.
Each flow-through unit consists of twenty thousand (20,000) flow-through common shares, at a price of $0.05 per share, and twenty thousand (20,000) non-flow-through common share purchase warrants. Each warrant will entitle the holder to purchase one additional common share of Forest Gate at a price of $0.10 until April 26, 2014.
Forest Gate will use the proceeds from the issuance of the flow-through units to explore its 100% owned Pershing Iron/Gold Property located in the Abitibi Region of Québec.
As a result of the private placement, there are 83,975,630 common shares of Forest Gate issued and outstanding.
Under applicable securities legislation and policies of the TSX Venture Exchange, the securities issued in the private placement are subject to a hold period expiring on August 27, 2012.
Michael Judson, Forest Gate's President & CEO, participated for 20 units in this private placement.
The private placement is subject to regulatory approval including that of the TSX Venture Exchange.
About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production, and non-energy resource company trading on the TSX Venture Exchange under the symbol FGE. The Corporation is seeking to increase shareholder value through participation and development of energy and other resources in Canada and internationally.
Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
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