Owner
Post by Franko10 ™ on Mar 30, 2005 19:06:17 GMT -5
Forest Gate Closes $6,500,000 Financing (cnw)
SHARES OUTSTANDING: 61 MILLION POST-FINANCING
SYMBOL & EXCHANGE: FGT-V
MONTREAL, March 30 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") is pleased to announce that it has successfully closed its previously announced financing in the amount of $6,500,000. Northern Securities Inc. ("Northern") acted as underwriter for the financing.
The Company raised $5,000,000 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. In addition the Company raised $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 was paid a commission of 10% of the gross proceeds of the offering and was granted broker warrants to acquire 2,500,000 Units. The broker warrants are exercisable at $0.25 per Unit for a period of two years.
In other news, the company's 2005 exploration program is set to begin early next week. "We are ahead of schedule with the beginning of our airborne electromagnetic geophysical survey and we am very pleased with the team we have been able to recruit," said Steve Roebuck, Vice President of Exploration.
Fugro Airborne Surveys, Calgary, Alberta have been hired to conduct an airborne electromagnetic survey on both the East Side property and the Southern property, covering over 45,000 hectares. "We have engaged one of the country's top electromagnetic geophysicists, Ken Witherly from Condor Consulting Inc., to supervise the project. Ken's expertise in this field is well known and he will act as our principal geophysical consultant throughout this exploration program." Said Roebuck.
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/
SHARES OUTSTANDING: 61 MILLION POST-FINANCING
SYMBOL & EXCHANGE: FGT-V
MONTREAL, March 30 /CNW/ - Forest Gate Resources Inc. ("Forest Gate" or the "Company") is pleased to announce that it has successfully closed its previously announced financing in the amount of $6,500,000. Northern Securities Inc. ("Northern") acted as underwriter for the financing.
The Company raised $5,000,000 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. In addition the Company raised $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 was paid a commission of 10% of the gross proceeds of the offering and was granted broker warrants to acquire 2,500,000 Units. The broker warrants are exercisable at $0.25 per Unit for a period of two years.
In other news, the company's 2005 exploration program is set to begin early next week. "We are ahead of schedule with the beginning of our airborne electromagnetic geophysical survey and we am very pleased with the team we have been able to recruit," said Steve Roebuck, Vice President of Exploration.
Fugro Airborne Surveys, Calgary, Alberta have been hired to conduct an airborne electromagnetic survey on both the East Side property and the Southern property, covering over 45,000 hectares. "We have engaged one of the country's top electromagnetic geophysicists, Ken Witherly from Condor Consulting Inc., to supervise the project. Ken's expertise in this field is well known and he will act as our principal geophysical consultant throughout this exploration program." Said Roebuck.
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/
