Forest Gate Closes $220,000 Private Placement With MineralFields Group
14 October 2011 - 9:01PM
PR Newswire (Canada)
SYMBOL & EXCHANGE: FGE-V CALGARY, Oct. 14, 2011 /CNW Telbec/ -
Forest Gate Energy Inc. reports that it has completed a private
placement by issuing an aggregate of 3,666,666 flow-through units
at a price of $0.06 per unit to two limited partnerships forming
part of the MineralFields Group of Toronto, Ontario, for gross
proceeds to Forest Gate of $220,000. Each flow-through unit
consists of one flow-through common share and one non-flow-through
common share purchase warrant. Each warrant will entitle the
holder to purchase one additional common share of Forest Gate at a
price of $0.12 until October 14, 2013. "We are very pleased to
be working with the MineralFields Group to further develop our
Iron/Gold Property in the Abitibi Region in the heart of Quebec,"
said Michael Judson, Forest Gate's President and Chief Executive
Officer. 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 79,955,630 common shares of Forest
Gate issued and outstanding. In connection with the closing of the
private placement, Forest Gate paid a cash finder's fee to Limited
Market Dealer Inc. of $11,000, representing 5% of the gross
proceeds raised in the private placement. Forest Gate also
issued compensation options to Limited Market Dealer Inc. to
purchase up to 366,666 units, representing 10% of the number of
"flow-through" units sold in the private placement. The
compensation options are exercisable at a price of $0.06 per unit
October 14, 2013. The units to be issued under the
compensation options will have the same terms as the respective
units issued in the private placement, except that none of the
common shares will be flow-through shares. 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 February 15, 2012. 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. About MineralFields, Pathway and First Canadian
Securities ® MineralFields Group (a division of Pathway Asset
Management), based in Toronto, Montreal, Vancouver and Calgary, is
a mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships
to investors throughout Canada as well as hard-dollar resource
limited partnerships to investors throughout the world. The sector
focus is on gold and precious metals, base metals, rare earths and
lithium, potash, uranium, oil, coal and gas. Pathway Asset
Management also specializes in the manufacturing and distribution
of structured products and mutual funds (including the Pathway
Multi Series Funds Inc. corporate-class mutual fund series).
Information about MineralFields Group is available at
www.mineralfields.com. First Canadian Securities ® (a
division of Limited Market Dealer Inc.) is active in leading
resource financings (both flow-through and hard dollar PIPE
financings) on competitive, effective and service-friendly terms,
and offers investment banking, mergers and acquisitions, and mining
industry consulting, services to resource companies.
MineralFields and Pathway have financed several hundred mining and
oil and gas exploration companies to date through First Canadian
Securities ®, and have raised over $1 billion in their 10 year
history. FORWARD-LOOKING STATEMENTS 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. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to
United States Persons unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption from such
registration is available. This news release is not for
distribution to United States newswire services or for
dissemination in the United States. 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. FOREST GATE ENERGY
INC. CONTACT: ROBERT KRAMBERGER, V-P, INVESTOR
RELATIONS1-866-666-3040 RKRAMBERGER@FORESTGATE.CAWWW.FORESTGATE.CA
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