Forest Gate Energy Inc. (TSXV:FGE)
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MONTREAL, April 11 /CNW/ --
SYMBOL & EXCHANGE: FGE-V
MONTREAL, April 11 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE)
reports that it has completed its previously-announced private
placement (see press release dated March 29, 2011) by issuing an
aggregate of 4,015,909 units (the "Units") at an issue price of eleven
cents ($0.11) per Unit to two accredited investors resident in Ontario
and Quebec, for gross proceeds to Forest Gate of $441,750.
Each Unit consists of one common share in the capital of Forest Gate
issued on a "flow-through" basis with a deemed issue price per share of
eleven cents ($0.11), and one common share purchase warrant entitling
the holder to acquire one additional common share of Forest Gate at an
exercise price of eighteen cents ($0.18) for a period of two years.
Part of the placement, namely 2,090,909 Units, was subscribed by one
limited partnership associated with the MineralFields Group of Toronto,
Ontario.
Forest Gate will use the proceeds from the issuance of the Units to
explore its 100% owned Pershing Gold Property located near Val-d'Or,
Québec.
As a result of this private placement, there are 59,281,064 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 of $11,500 to Limited Market Dealer Inc.,
representing 5% of the gross proceeds raised from the MineralFields
Group. Forest Gate also issued compensation options to Limited Market
Dealer Inc. to purchase up to 209,090 units representing 10 % of the
number of Units sold to the MineralFields Group in the private
placement. The compensation options are exercisable at a price of
$0.11 per unit until April 11, 2013. The units to be issued under the
compensation options will have the same terms as the Units issued in
the private placement, except that none of the shares will be
"flow-through" shares.
All of the securities issued in connection with the private placement
are subject to a four month hold period expiring on August 12, 2011.
About Forest Gate
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 Company 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.
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/April2011/11/c3170.html
p align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ ua href="mailto:rkramberger@forestgate.ca" cr="true"RKRAMBERGER@FORESTGATE.CA/a/ubr/ ua href="http://www.forestgate.ca" cr="true"WWW.FORESTGATE.C/a/uua href="http://www.forestgate.ca" cr="true"A/a/u /p