By Devika Patel
Knoxville, Tenn., June 2 - Forest Gate Resources Inc. said it has completed an initial tranche of a C$1.75 million private placement of units, raising C$1.33 million. The deal priced as a C$3 million units and stock deal on April 11; it was decreased and amended to include only units on June 2.
Forest Gate is selling flow-through units at C$0.09 apiece and units at C$0.07 per unit. In this tranche, it sold 2,222,221 flow-through units for C$199,999.89 and 16,111,430 units for C$1.13 million.
Each flow-through unit will consist of one flow-through common share and one half-share warrant.
Each unit comprises one common share and one warrant.
Each whole warrant is exercisable at C$0.10 for two years.
The company had planned to sell $1.5 million in flow-through shares at C$0.13 per share and $1.5 million in units at C$0.10 apiece, or 15 million units.
Northern Securities Inc., the agent, has a greenshoe for 20%.
Proceeds will be used for general working capital purposes and the company's ongoing projects in Canada.
Based in Montreal, Forest Gate is an oil and gas exploration company.
| Issuer: | Forest Gate Resources Inc.
|
| Issue: | Units of one common share and one warrant; flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$1.75 million
|
| Greenshoe: | 20%
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Northern Securities Inc.
|
| Pricing date: | April 11
|
| Revised: | May 29
|
| Settlement date: | June 2 (for C$1,327,800)
|
| Stock symbol: | TSX Venture: FGT
|
| Stock price: | C$0.10 at close April 10
|
|
|
| Flow-through units
|
| Price: | C$0.09
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Price: | C$0.07
|
| Warrants: | One warrant per unit
|
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