Owner
Post by Franko10 ™ on Mar 2, 2005 19:56:50 GMT -5
Forest Gate Increases Financing to $6,500,000 and Announces $2 Million Financing for Blue Note Metals (cnw)
SHARES OUTSTANDING: 27 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, March 2 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") is pleased to announce that it has increased the amount of its financing with Northern Securities Inc. ("Northern"), which was disclosed on February 24, 2005, from $4,000,000 to $6,500,000. The Company will now raise up to $5,000,000 in Units (an increase from $2,500,000), 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 continue to 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 will be paid a commission of 10% 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. There is no over-allotment option so that the maximum amount of the financing is $6.5 million.
The offering is scheduled to close on or about March 15, 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.
Forest Gate also announces that its wholly owned subsidiary Blue Note Metals Inc. ("Blue Note") has entered into a financing agreement with Northern in which Blue Note will raise up to $2,000,000 on a private placement basis.
Blue Note will issue up to 8,000,000 Units at a price of $0.25 per Unit. Each Unit will consist of one common share and one share purchase warrant (the "Warrant") with each whole warrant being exercised at a price of $0.30 per share for a period of two years following the pubic listing of Blue Note.
Forest Gate has also engaged Northern as its financial advisor in connection with the Company's proposed corporate reorganization involving the transfer of the Company's New Brunswick metals properties to Blue Note and the acquisition of the Caribou and Restigouche Mines from Breakwater Resources Inc. ("Breakwater").
Following the Blue Note financing, Forest Gate proposes to transfer to Blue Note a 100% ownership of (i) the Canoe Landing Lake polymetallic deposit, (ii) the California Lake silver property and (iii) the Rio Road gold property, as well as an assignment of the Letter of Intent agreement that Forest Gate has entered into with Breakwater to acquire the Caribou and Restigouche Mines. Forest Gate may also transfer cash of up to $1.0 million to Blue Note.
Forest Gate proposes to distribute, by way of plan of arrangement under the Canada Business Corporations Act, the shares of Blue Note to the shareholders of Forest Gate on a basis that is expected to result in the Forest Gate shareholders owning 50% of the issued shares of Blue Note and the investors in the Blue Note financing owning the other 50% of the issued shares of Blue Note. Forest Gate has not yet finalized this allocation of equity interests.
The distribution of shares of Blue Note is subject to shareholder and regulatory approval.
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, www.forestgate.ca or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor(at)tigercapital.com/
SHARES OUTSTANDING: 27 MILLION
SYMBOL & EXCHANGE: FGT-V
MONTREAL, March 2 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") is pleased to announce that it has increased the amount of its financing with Northern Securities Inc. ("Northern"), which was disclosed on February 24, 2005, from $4,000,000 to $6,500,000. The Company will now raise up to $5,000,000 in Units (an increase from $2,500,000), 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 continue to 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 will be paid a commission of 10% 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. There is no over-allotment option so that the maximum amount of the financing is $6.5 million.
The offering is scheduled to close on or about March 15, 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.
Forest Gate also announces that its wholly owned subsidiary Blue Note Metals Inc. ("Blue Note") has entered into a financing agreement with Northern in which Blue Note will raise up to $2,000,000 on a private placement basis.
Blue Note will issue up to 8,000,000 Units at a price of $0.25 per Unit. Each Unit will consist of one common share and one share purchase warrant (the "Warrant") with each whole warrant being exercised at a price of $0.30 per share for a period of two years following the pubic listing of Blue Note.
Forest Gate has also engaged Northern as its financial advisor in connection with the Company's proposed corporate reorganization involving the transfer of the Company's New Brunswick metals properties to Blue Note and the acquisition of the Caribou and Restigouche Mines from Breakwater Resources Inc. ("Breakwater").
Following the Blue Note financing, Forest Gate proposes to transfer to Blue Note a 100% ownership of (i) the Canoe Landing Lake polymetallic deposit, (ii) the California Lake silver property and (iii) the Rio Road gold property, as well as an assignment of the Letter of Intent agreement that Forest Gate has entered into with Breakwater to acquire the Caribou and Restigouche Mines. Forest Gate may also transfer cash of up to $1.0 million to Blue Note.
Forest Gate proposes to distribute, by way of plan of arrangement under the Canada Business Corporations Act, the shares of Blue Note to the shareholders of Forest Gate on a basis that is expected to result in the Forest Gate shareholders owning 50% of the issued shares of Blue Note and the investors in the Blue Note financing owning the other 50% of the issued shares of Blue Note. Forest Gate has not yet finalized this allocation of equity interests.
The distribution of shares of Blue Note is subject to shareholder and regulatory approval.
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, www.forestgate.ca or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor(at)tigercapital.com/
