Owner
Post by Franko10 ™ on Dec 3, 2004 18:45:19 GMT -5
Forest Gate-Breakwater Letter of Intent Amended (cnw)
SHARES OUTSTANDING: 25 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Dec. 3 /CNW/ - Forest Gate Resources Inc. reports that the Letter of Intent that it signed with Breakwater Resources Ltd., Toronto, with respect to the acquisition of Breakwater's Caribou and Restigouche Mines (the "Mines"), has been amended.
Under the terms of the amended agreement, Forest Gate has until January 15, 2005 to complete its due diligence and until March 15, 2005 to close on the transaction.
As previously reported, Forest Gate has formed a wholly owned subsidiary, Blue Note Metals Inc. to undertake the acquisition. It is Forest Gate's intention to transfer its existing New Brunswick mineral properties to Blue Note Metals and to have Blue Note complete the acquisition of the Mines.
Once this is completed, it is Forest Gate's intention to spin out Blue Note Metals by way of a plan of arrangement under the Canada Business Corporations Act and consequently list Blue Note as a separate entity on the TSX Venture Exchange.
This proposed transaction, which is subject to shareholder and regulatory approval, will give Forest Gate shareholders shares in a separate public company that will own the Mines and the New Brunswick exploration properties.
In addition to the two Mine sites, the acquisition includes associated infrastructure as well as a number of exploration claims in the vicinity of the Mines. The Caribou Mine site is located 50 km west of Bathurst, New Brunswick and includes an underground mine currently being kept under care and maintenance, a 3000-tonne per day concentrator and a permitted tailings facility.
The Restigouche Mine site, located 30 km further west, includes an open pit mine and associated infrastructure and is also currently under care and maintenance. Potential exists to expand mineral resources at the Caribou Mine site, which has not been drilled at depth or along strike. The associated exploration claims are also believed to have good potential.
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 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: PLEASE CONTACT: MICHAEL JUDSON, PRESIDENT & CEO, TOLL FREE: (866) 666-3040, mjudson(at)forestgate.ca, www.forestgate.ca/
SHARES OUTSTANDING: 25 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Dec. 3 /CNW/ - Forest Gate Resources Inc. reports that the Letter of Intent that it signed with Breakwater Resources Ltd., Toronto, with respect to the acquisition of Breakwater's Caribou and Restigouche Mines (the "Mines"), has been amended.
Under the terms of the amended agreement, Forest Gate has until January 15, 2005 to complete its due diligence and until March 15, 2005 to close on the transaction.
As previously reported, Forest Gate has formed a wholly owned subsidiary, Blue Note Metals Inc. to undertake the acquisition. It is Forest Gate's intention to transfer its existing New Brunswick mineral properties to Blue Note Metals and to have Blue Note complete the acquisition of the Mines.
Once this is completed, it is Forest Gate's intention to spin out Blue Note Metals by way of a plan of arrangement under the Canada Business Corporations Act and consequently list Blue Note as a separate entity on the TSX Venture Exchange.
This proposed transaction, which is subject to shareholder and regulatory approval, will give Forest Gate shareholders shares in a separate public company that will own the Mines and the New Brunswick exploration properties.
In addition to the two Mine sites, the acquisition includes associated infrastructure as well as a number of exploration claims in the vicinity of the Mines. The Caribou Mine site is located 50 km west of Bathurst, New Brunswick and includes an underground mine currently being kept under care and maintenance, a 3000-tonne per day concentrator and a permitted tailings facility.
The Restigouche Mine site, located 30 km further west, includes an open pit mine and associated infrastructure and is also currently under care and maintenance. Potential exists to expand mineral resources at the Caribou Mine site, which has not been drilled at depth or along strike. The associated exploration claims are also believed to have good potential.
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 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: PLEASE CONTACT: MICHAEL JUDSON, PRESIDENT & CEO, TOLL FREE: (866) 666-3040, mjudson(at)forestgate.ca, www.forestgate.ca/
