Post by Franko10 ™ on Sept 21, 2005 16:28:37 GMT -5
Forest Gate Grants Agent's Option to Increase Size of Flow-Through Private Placement to up to $1.2 Million
17:12 EDT Wednesday, September 21, 2005
MONTREAL, Sept. 21 /CNW/ - Forest Gate Resources Inc. is pleased to announce that it has granted to its agent Northern Securities Inc. an option to increase the size of its previously announced private placement of up to $1 million of flow-through shares by up to an additional $200,000. If the Agent's Option is fully exercised, the gross proceeds of the private placement will be up $1.2 million.
The additional flow-through shares will be priced at $0.38 per share, the same price as the balance of the private placement.
The proceeds of the financing will be used for exploration on the Portage property located in the Otish Mountain region of Quebec. Pursuant to a Memorandum of Understanding dated July 5, 2005, with Majescor Resources Inc., Forest Gate has the right to earn a 50% interest in the Portage property from Majescor by spending $5 million in exploration work on the property prior to November 1, 2009. Upon completion of the $5,000,000 of payments towards exploration on the property, the parties will enter into formal joint venture agreement. Forest Gate can also earn an additional 5% interest in the property by funding a 200-tonne bulk sample from a kimberlite body.
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 symbols FGT and FGT.WT, respectively, 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 does not accept responsibility for the adequacy
or accuracy of this news release.
For further information: ROBERT KRAMBERGER, INVESTOR RELATIONS, FOREST GATE RESOURCES INC., (866) 666-3040, RKRAMBERGER@FORESTGATE.CA, WWW.FORESTGATE.CA OR TREVOR BURNS, PRESIDENT, TIGER CAPITAL CORPORATION, TORONTO, ONTARIO, (416) 252-3663, INVESTOR@TIGERCAPITAL.COM
17:12 EDT Wednesday, September 21, 2005
MONTREAL, Sept. 21 /CNW/ - Forest Gate Resources Inc. is pleased to announce that it has granted to its agent Northern Securities Inc. an option to increase the size of its previously announced private placement of up to $1 million of flow-through shares by up to an additional $200,000. If the Agent's Option is fully exercised, the gross proceeds of the private placement will be up $1.2 million.
The additional flow-through shares will be priced at $0.38 per share, the same price as the balance of the private placement.
The proceeds of the financing will be used for exploration on the Portage property located in the Otish Mountain region of Quebec. Pursuant to a Memorandum of Understanding dated July 5, 2005, with Majescor Resources Inc., Forest Gate has the right to earn a 50% interest in the Portage property from Majescor by spending $5 million in exploration work on the property prior to November 1, 2009. Upon completion of the $5,000,000 of payments towards exploration on the property, the parties will enter into formal joint venture agreement. Forest Gate can also earn an additional 5% interest in the property by funding a 200-tonne bulk sample from a kimberlite body.
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 symbols FGT and FGT.WT, respectively, 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 does not accept responsibility for the adequacy
or accuracy of this news release.
For further information: ROBERT KRAMBERGER, INVESTOR RELATIONS, FOREST GATE RESOURCES INC., (866) 666-3040, RKRAMBERGER@FORESTGATE.CA, WWW.FORESTGATE.CA OR TREVOR BURNS, PRESIDENT, TIGER CAPITAL CORPORATION, TORONTO, ONTARIO, (416) 252-3663, INVESTOR@TIGERCAPITAL.COM