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Post by Franko10 ™ on Sept 28, 2005 5:27:29 GMT -5
Forest Gate Increases Flow-Through Offering to $1.5 Million
08:00 EDT Wednesday, September 28, 2005
MONTREAL, Sept. 28 /CNW/ - Forest Gate Resources Inc. is pleased to announce that it has increased its offering of flow-through shares by way of a private placement to up to $1,500,000. This represents an increase of up to $300,000 of flow-through shares to be distributed from the previously announced offering of up to $1,200,000 (including the $200,000 option that had been previously granted to Northern Securities Inc. ("Northern") as agent). The option has been eliminated so the maximum amount of the offering, as revised, is $1,500,000.
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., 1-866-666-3040, rkramberger@forestgate.ca, http://www.forestgate.ca; or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor@tigercapital.com
08:00 EDT Wednesday, September 28, 2005
MONTREAL, Sept. 28 /CNW/ - Forest Gate Resources Inc. is pleased to announce that it has increased its offering of flow-through shares by way of a private placement to up to $1,500,000. This represents an increase of up to $300,000 of flow-through shares to be distributed from the previously announced offering of up to $1,200,000 (including the $200,000 option that had been previously granted to Northern Securities Inc. ("Northern") as agent). The option has been eliminated so the maximum amount of the offering, as revised, is $1,500,000.
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., 1-866-666-3040, rkramberger@forestgate.ca, http://www.forestgate.ca; or Trevor Burns, President, Tiger Capital Corporation, Toronto, Ontario, (416) 252-3663, investor@tigercapital.com
