Symbol & exchange: FGE-V
CALGARY, April 5, 2012 /CNW Telbec/ - Forest Gate (TSXV: FGE) reports that its mineral exploration group continues to work on the financing required to develop its two 100 percent-owned iron ore properties located in the Abitibi region of central Quebec.
Forest Gate reports that it is actively exploring the opportunity of a joint venture with another iron ore exploration or steel company to develop the opportunity.
"We are speaking with several potential partners and we expect to have a deal done soon," said Michael Judson, Forest Gate's President. "We have a drilling company ready to go and at a minimum we would like to have the Pershing iron ore property advanced to a resource valuation stage by year-end."
Forest Gate reported the discovery of iron ore on its Pershing property on August 11, 2011 (FGE news release, 11/08/11). Drill hole FG11-03 intersected a banded iron formation with magnetite intervals containing 29.3 iron%. Most important, Pershing is 40 miles south of a CN-operated rail line which runs east to a deepwater port and west to Canadian and American steel mills.
Forest Gate also says that its energy group continues to look at opportunities to acquire oil-producing assets in Alberta and Saskatchewan. The company is currently producing approximately 40 barrels of oil equivalent per day.
In other news, a secured creditor, with which Forest Gate inherited a credit facility, is demanding repayment of a loan in the value of $120,572. The loan, which originally was in the amount of $277,000 and has been repaid in part, was incurred with the acquisition of a private oil company (FGE news release, 23/12/10). The secured creditor says that it plans to enforce its security over assets of the company.
"We are in discussions with the secured creditor and their counsel regarding repayment and we expect a resolution to the matter will be forthcoming soon," said Michael Judson.
About Forest Gate
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 Company 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.
For further information: