Forest Gate Resources Inc. announces today that it will be undertaking a non-brokered private placement, whereby the Company intends to raise up to $600,000 in Units.
Each Unit, priced at $0.05 per Unit, will consist of one common share and one common share purchase warrant. Each warrant will be exercisable into one common share for a period of two years from closing at an exercise price of $0.10 per share. The Units will be issued pursuant to applicable prospectus and registration exemptions and will be subject to a four-month hold period.
The Company will pay, where appropriate, a cash finder's fee of 8% in connection with the placement and issue finder's fee warrants equal up to 8% of the total number of Units issued under the offering. Each finder's fee warrant will entitle the holder to subscribe for Units of the Company at an exercise price of $0.10 for a period of two years after issuance.
The Company intends to utilize the proceeds from the private placement to finance its commitment in acquiring the 7.5% working interest in the Celtic Sea Oil & Gas Exploration License pursuant to the Joint Operating Agreement ("JOA") entered into with its Celtic Sea consortium partners.
"With this financing, we will be able to pay the June 3, 2008 cash call and amend our current default status with the Celtic Sea partners", said Michael Judson, President and Chief Executive Officer of Forest Gate Resources Inc. "Once again, our investors have given us a strong vote of confidence to carry on with this important project." -- www.cnxmarketlink.com
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