By Sheri Kasprzak
Atlanta, Feb. 25 - Forest Gate Resources Inc. said it will raise up to C$4 million in a private placement.
The offering includes up to 10 million units at C$0.25 each and up to 5 million flow-through units at C$0.30 each for C$2.5 million and C$1.5 million, respectively.
The common share units are comprised of one share and one half-share warrant. The whole warrants allow for an additional share at C$0.35 each for two years.
The flow-through units consist of one share and one half-share warrant. The whole warrants allow for an additional share at C$0.40 each for two years.
The offering is being underwritten by Northern Securities Inc.
The deal is set to close March 18.
Based in Montreal, Forest Gate is a mineral exploration company focused on diamonds and precious and base metals. The proceeds will be used for exploration on its diamond properties and for general working capital.
| Issuer: | Forest Gate Resources Inc.
|
| Issue: | Units of one share and one half-share warrant (flow-through and non flow-through)
|
| Amount: | C$4 million (maximum)
|
| Underwriter: | Northern Securities Inc.
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| Pricing date: | Feb. 24
|
| Settlement date: | March 18
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| Stock price: | C$0.30 at close Feb. 24
|
|
|
| Non flow-through units
|
| Issue: | Units of one common share and one half-share warrant
|
| Units: | 10 million (maximum)
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.35
|
|
|
| Flow-through units
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| Issue: | Units of one flow-through share and one half-share warrant
|
| Units: | 5 million (maximum)
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| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
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