SHARES OUTSTANDING: 96 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Aug. 13 /CNW Telbec/ - Forest Gate Resources Inc. (the
"Company") is pleased to announce that it has closed the third and final
tranche of its proposed $1.5 million non-brokered private placement which was
announced in a news release dated July 18, 2007. The total proceeds raised
from the three tranches amounted to $1,625,400, with an oversubscription of
In the third tranche, the Company has issued 3,300,000 units at a price
of $0.12 per unit, for total gross proceeds of $396,000. Each Unit is
comprised of one common share and one common share purchase warrant of the
Company, with a hold period expiring December 11, 2007. Each share purchase
warrant will entitle the holder to purchase one additional common share of the
Company at a price of $0.15 per share with an expiry date of August 10, 2009.
At closing, the Company paid a finder's fee of the following:
(i) a cash commission of $28,800.
(ii) 240,000 finder's fee warrants. Each finder's fee warrant entitles
the holder to purchase one Unit of the Corporation at a price of
$0.12 until August 10, 2009.
The Company intends to utilize the proceeds from the private placement
for general working capital purposes and to finance its commitment to its
working interest in the Celtic Sea Oil & Gas Exploration License pursuant to
the Joint Operating Agreement ("JOA") entered into with its Celtic Sea
consortium partners, as previously announced on July 5, 2007.
In other news, the Company announces that Jean Girard has resigned from
the Forest Gate board of directors. "Jean Girard has been with the company
since the beginning and has added great value to our business." said
Michael Judson, President and CEO of Forest Gate. "Jean is a mineral
exploration geologist, so with the company's expansion into oil and gas, he
felt it was time to move on. We sincerely wish Jean all the best in his future
endeavors and thank him for his great contribution to Forest Gate."
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: Angela Colizza, Investor Relations Manager,
1-866-666-3040, firstname.lastname@example.org, www.forestgate.ca