Forest Gate Closes $220,000 Private Placement With MineralFields Group

    




 SYMBOL & EXCHANGE: FGE-V 

 CALGARY, Oct. 14, 2011 /CNW Telbec/ - Forest Gate Energy Inc.  reports that it has completed a private placement by issuing an  aggregate of 3,666,666 flow-through units at a price of $0.06 per unit  to two limited partnerships forming part of the MineralFields Group of  Toronto, Ontario, for gross proceeds to Forest Gate of $220,000. 

 Each flow-through unit consists of one flow-through common share and one  non-flow-through common share purchase warrant.  Each warrant will  entitle the holder to purchase one additional common share of Forest  Gate at a price of $0.12 until October 14, 2013. 

 "We are very pleased to be working with the MineralFields Group to  further develop our Iron/Gold Property in the Abitibi Region in the  heart of Quebec," said Michael Judson, Forest Gate's President and  Chief Executive Officer. 

 Forest Gate will use the proceeds from the issuance of the flow-through  units to explore its 100% owned Pershing Iron/Gold Property located in  the Abitibi Region of Québec. 

 As a result of the private placement, there are 79,955,630 common shares  of Forest Gate issued and outstanding. 

 In connection with the closing of the private placement, Forest Gate  paid a cash finder's fee to Limited Market Dealer Inc. of $11,000,  representing 5% of the gross proceeds raised in the private placement.   Forest Gate also issued compensation options to Limited Market Dealer  Inc. to purchase up to 366,666 units, representing 10% of the number of  "flow-through" units sold in the private placement. The compensation  options are exercisable at a price of $0.06 per unit October 14, 2013.   The units to be issued under the compensation options will have the  same terms as the respective units issued in the private placement,  except that none of the common shares will be flow-through shares. 

 Under applicable securities legislation and policies of the TSX Venture  Exchange, the securities issued in the private placement are subject to  a hold period expiring on February 15, 2012. 

 About Forest Gate Energy Forest Gate Energy Inc. is a publicly listed oil and gas exploration and  production, and non-energy resource company trading on the TSX Venture  Exchange under the symbol FGE. The Corporation is seeking to increase  shareholder value through participation and development of energy and  other resources in Canada and internationally. 

 About MineralFields, Pathway and First Canadian Securities ® MineralFields Group (a division of Pathway Asset Management), based in  Toronto, Montreal, Vancouver and Calgary, is a mining fund with  significant assets under administration that offers its tax-advantaged  super flow-through limited partnerships to investors throughout Canada  as well as hard-dollar resource limited partnerships to investors  throughout the world. The sector focus is on gold and precious metals,  base metals, rare earths and lithium, potash, uranium, oil, coal and  gas.  Pathway Asset Management also specializes in the manufacturing  and distribution of structured products and mutual funds (including the  Pathway Multi Series Funds Inc. corporate-class mutual fund series).  Information about MineralFields Group is available at www.mineralfields.com.  First Canadian Securities ® (a division of Limited Market Dealer  Inc.) is active in leading resource financings (both flow-through and  hard dollar PIPE financings) on competitive, effective and  service-friendly terms, and offers investment banking, mergers and  acquisitions, and mining industry consulting, services to resource  companies.  MineralFields and Pathway have financed several hundred  mining and oil and gas exploration companies to date through First  Canadian Securities ®, and have raised over $1 billion in their 10 year  history. 

  FORWARD-LOOKING STATEMENTS 

 Certain statements regarding Forest Gate, including management's  assessments of future plans and operations and Forest Gate's  anticipated financial performance, may constitute forward-looking  statements under applicable securities laws and necessarily involve  known and unknown risks and uncertainties, most of which are beyond  Forest Gate's control. These risks may cause actual financial and  operating results, performance, levels of activity and achievements to  differ materially from those expressed in, or implied by, such  forward-looking statements. 

 Such factors include, but are not limited to: the impact of general  economic conditions in Canada and the United States; industry  conditions including changes in laws and regulations including adoption  of new environmental laws and regulations, and changes in how they are  interpreted and enforced; competition; the lack of availability of  qualified personnel; fluctuations in commodity prices; the results of  exploration and development drilling and related activities;  imprecision in reserve estimates; the production and growth potential  of Forest Gate's various assets; fluctuations in foreign exchange or  interest rates; the ability to access sufficient capital from internal  and external sources; and obtaining required approvals of regulatory  authorities. 

 This news release does not constitute an offer to sell or a solicitation  of an offer to buy any of the securities in the United States.  The  securities have not been and will not be registered under the United  States Securities Act of 1933, as amended (the "U.S. Securities Act"),  or any state securities laws and may not be offered or sold within the  United States or to United States Persons unless registered under the  U.S. Securities Act and applicable state securities laws or an  exemption from such registration is available. 

 This news release is not for distribution to United States newswire  services or for dissemination in the United States. 

 Neither TSX Venture Exchange nor its Regulation Service Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or the accuracy of this  release.  

FOREST GATE ENERGY INC.


CONTACT:  ROBERT KRAMBERGER, V-P, INVESTOR RELATIONS1-866-666-3040 [e-mail] 


    

Copyright