Owner
Post by Franko10 ™ on Feb 24, 2005 19:40:53 GMT -5
Forest Gate to Raise up to $4,000,000 in Private Placement including $2,500,000 on a Bought Deal Basis
19:34 EST Thursday, February 24, 2005
SHARES OUTSTANDING: 27 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Feb. 24 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") announces that it has entered into a financing agreement with Northern Securities Inc. ("Northern") pursuant to which Forest Gate will raise up to $4,000,000 on a private placement basis. The Company will raise up to $2,500,000 in Units, at $0.25 per Unit, with each Unit consisting of a common share and a half warrant exercisable at $0.35 per share for a period of two years. The Company will also raise up to $1,500,000 in Flow-Through Units, at $0.30 per Flow-Through Unit, with each Flow-Through Unit consisting of a flow-through common share and a half warrant exercisable at $0.40 per share for a period of two years.
Northern has agreed to purchase $2,500,000 of the securities offered, in either Units or Flow-Through Units (subject to a maximum of $1,5000,00 in Flow-Through Units) at Northern's discretion, on a bought deal underwritten basis. The balance of $1,500,000 in securities will be offered on a best efforts agency basis.
Northern will be paid a commission of 8% of the gross proceeds of the offering and will also be granted broker warrants to acquire such number of Units equal to 10% of the aggregate number of Units and Flow-Through Units sold in the offering. The broker warrants will be exercisable at $0.25 per Unit for a period of two years. Northern has also been offered an over-allotment option to acquire an additional 15% of the Units and Flow-Through Units sold, with such over-allotment option to be exercised within 60 days of closing.
The offering is scheduled to close on or about March 18, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Proceeds from the offering will be used for exploration purposes in the Company's Saskatchewan diamond properties, and for general working capital purposes.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and precious metals and base metals 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: Robert Kramberger, Investor Relations, Forest Gate Resources Inc., (866) 666-3040, Rkramberger(at)forestgate.ca, http://www.forestgate.ca; or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor(at)tigercapital.com/
19:34 EST Thursday, February 24, 2005
SHARES OUTSTANDING: 27 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, Feb. 24 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") announces that it has entered into a financing agreement with Northern Securities Inc. ("Northern") pursuant to which Forest Gate will raise up to $4,000,000 on a private placement basis. The Company will raise up to $2,500,000 in Units, at $0.25 per Unit, with each Unit consisting of a common share and a half warrant exercisable at $0.35 per share for a period of two years. The Company will also raise up to $1,500,000 in Flow-Through Units, at $0.30 per Flow-Through Unit, with each Flow-Through Unit consisting of a flow-through common share and a half warrant exercisable at $0.40 per share for a period of two years.
Northern has agreed to purchase $2,500,000 of the securities offered, in either Units or Flow-Through Units (subject to a maximum of $1,5000,00 in Flow-Through Units) at Northern's discretion, on a bought deal underwritten basis. The balance of $1,500,000 in securities will be offered on a best efforts agency basis.
Northern will be paid a commission of 8% of the gross proceeds of the offering and will also be granted broker warrants to acquire such number of Units equal to 10% of the aggregate number of Units and Flow-Through Units sold in the offering. The broker warrants will be exercisable at $0.25 per Unit for a period of two years. Northern has also been offered an over-allotment option to acquire an additional 15% of the Units and Flow-Through Units sold, with such over-allotment option to be exercised within 60 days of closing.
The offering is scheduled to close on or about March 18, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Proceeds from the offering will be used for exploration purposes in the Company's Saskatchewan diamond properties, and for general working capital purposes.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and precious metals and base metals 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: Robert Kramberger, Investor Relations, Forest Gate Resources Inc., (866) 666-3040, Rkramberger(at)forestgate.ca, http://www.forestgate.ca; or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor(at)tigercapital.com/
