Post by Franko10 ™ on Oct 27, 2004 10:50:24 GMT -5
Forest Gate Closes $252,000 in Private Placement
09:33 EDT Wednesday, October 27, 2004
SHARES OUTSTANDING: 25 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Oct. 27 /CNW/ - Forest Gate Resources Inc. reports it has closed a private placement of 1,400,000 flow-through units.
The Unit consists of one common flow-through share at $0.18 and one half of a common share purchase warrant. Each whole warrant is exercisable into one non-flow-through common share for a period of two years at a price of $0.23 in the first year and $0.26 in the second year.
This issue generated total proceeds to Forest Gate of $252,000. The flow- through shares have a mandatory hold-period of four months from closing.
The proceeds from the financing will go towards exploration of the company's mineral properties. Forest Gate paid its agent, Canaccord Capital Corporation, a commission of $20,160 and 140,000 share purchase warrants. The warrants are exercisable at $0.23 in the first year and $0.26 in the second year. Canaccord also received a corporate finance fee totaling 40,000 common shares and 40,000 common share purchase warrants. The corporate finance warrants are exercisable at $0.18 per share for a period of two years.
In other news, Forest Gate's Vice-President of Exploration, Pieter Du Plessis, arrives in Montreal this Saturday and starts full-time work for the company on Monday morning, November 1. Mr. Du Plessis has already prepared the first part of a comprehensive exploration plan for the East Side diamond property near Prince Albert, Saskatchewan. Forest Gate is still waiting for some of the assay results from the summer drilling program it conducted on its California Lake silver property and Rio Road gold property.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and precious and base metal properties in New Brunswick. The company's shares and warrants trade under the symbol FGT on the TSX Venture Exchange.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be Forward- Looking Statements achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
/For further information: MICHAEL JUDSON, PRESIDENT & CEO, TOLL FREE: 866-666-3040, mjudson(at)forestgate.ca, www.forestgate.ca/
09:33 EDT Wednesday, October 27, 2004
SHARES OUTSTANDING: 25 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Oct. 27 /CNW/ - Forest Gate Resources Inc. reports it has closed a private placement of 1,400,000 flow-through units.
The Unit consists of one common flow-through share at $0.18 and one half of a common share purchase warrant. Each whole warrant is exercisable into one non-flow-through common share for a period of two years at a price of $0.23 in the first year and $0.26 in the second year.
This issue generated total proceeds to Forest Gate of $252,000. The flow- through shares have a mandatory hold-period of four months from closing.
The proceeds from the financing will go towards exploration of the company's mineral properties. Forest Gate paid its agent, Canaccord Capital Corporation, a commission of $20,160 and 140,000 share purchase warrants. The warrants are exercisable at $0.23 in the first year and $0.26 in the second year. Canaccord also received a corporate finance fee totaling 40,000 common shares and 40,000 common share purchase warrants. The corporate finance warrants are exercisable at $0.18 per share for a period of two years.
In other news, Forest Gate's Vice-President of Exploration, Pieter Du Plessis, arrives in Montreal this Saturday and starts full-time work for the company on Monday morning, November 1. Mr. Du Plessis has already prepared the first part of a comprehensive exploration plan for the East Side diamond property near Prince Albert, Saskatchewan. Forest Gate is still waiting for some of the assay results from the summer drilling program it conducted on its California Lake silver property and Rio Road gold property.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and precious and base metal properties in New Brunswick. The company's shares and warrants trade under the symbol FGT on the TSX Venture Exchange.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be Forward- Looking Statements achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
/For further information: MICHAEL JUDSON, PRESIDENT & CEO, TOLL FREE: 866-666-3040, mjudson(at)forestgate.ca, www.forestgate.ca/