Forest Gate Energy Inc.
Symbol & Exchange: FGE-V
Forest Gate Closes $220,000 Private Placement With MineralFields Group
CALGARY, Alberta, October 14, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV:
FGE) 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-flowthrough 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 Qu¨¦bec.
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 Company is seeking to increase shareholder value through participation and development of energy and other resources in Canada and internationally.
For more information please contact:
Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca
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.
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.
