Forest Gate Energy Inc. (TSXV:FGE)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Forest Gate Energy Inc. Charts. Click Here for more Forest Gate Energy Inc. Charts.](/p.php?pid=staticchart&s=TX%5EFGE&p=8&t=15)
MONTREAL, Oct. 28 /CNW/ --
This news release is not for distribution to United States newswire
services or for dissemination in the United States.
Symbol & exchange: FGE-V
MONTREAL, Oct. 28 /CNW Telbec/ - Forest Gate Energy Inc. reports that it
has completed a non-brokered private placement by issuing an aggregate
of 6,111,110 flow-through units at a price of $0.09 per unit and
625,000 hard dollar units at a price of $0.08 per unit to three limited
partnerships associated with the MineralFields Group of Toronto,
Ontario, for gross proceeds to Forest Gate of $600,000.
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 $0.20 until October 27, 2012. The hard dollar unit
consists of one common share and one common share purchase warrant.
Each warrant will entitle the holder to purchase one additional common
share of Forest Gate at a price of $0.15 until October 27, 2012.
As previously disclosed in Forest Gate's September 2, 2010 news release,
the Pershing Gold Property was drilled in 1996, intersecting 15.54
grams of gold per ton over 1.50 metres, 11.59 grams of gold per ton
over 1.66 metres, and 19.23 grams of gold per ton over 1.33 metres in
the banded iron formation. (Source: MRB & Assoc., Val D'Or, 2003).
Forest Gate has a 100% interest in the Pershing Gold Property
During the 2000 to 2003 period, a well-developed hydrothermal alteration
zone was partially mapped in drill core. The basal portions of the
iron formation at the distal margin to the alteration zone have
developed strongly silicified amphibole-biotite-garnet intervals
containing disseminated to massive lenses of chlorite-pyrrhotite that
consistently contain gold values ranging from 1 to 8.7 gpt over 0.3 to
3.0 m sampling intervals. Several narrow quartz-tourmaline veins (1m)
carrying gold, the highest value noted over the vein interval being
49.04 grams gold per ton, have also been observed in the unaltered
units overlying the hydrothermally altered iron formation. (source:
MRB)
"We are very pleased to be working with the MineralFields Group to
develop our recently-acquired Pershing Gold Property" 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 Gold Property located near
Val-d'Or, Québec and will use the balance of the net proceeds of the
private placement for working capital and general corporate purposes.
As a result of the private placement, there are 46,186,035 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 $30,000,
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 611,111 units and up to 62,500 hard dollar
units of Forest Gate, representing 10 % of the number of "flow-through"
units and hard dollar units, respectively, sold in the private
placement. The compensation options are exercisable at a price of
$0.09 per unit and at a price of $0.08 per hard dollar unit, until
October 27, 2012. 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 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 28, 2011.
The technical content of this news release has been approved by Edward
Procyshyn, Mineral Geologist, Forest Gate Energy Inc., a Qualified
Person as defined in National Instrument 43-101 - Standard of
Disclosure for Mineral Projects.
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, Vancouver, Montreal 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. 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 ®.
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.
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.
To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/October2010/28/c6581.html
pRobert Kramberger, V-P, Investor Relationsbr/ 1-866-666-3040 br/ a href="mailto:RKRAMBERGER@FORESTGATE.CA"rkramberger@forestgate.ca/a br/ a href="http://www.forestgate.ca"uwww.forestgate.ca/u/a/p