Forest Gate Energy Completes Financing
Forest Gate Energy has completed a non-brokered private placement and has issued 1,324,000 units at a price of $0.25 per Unit, for total gross proceeds of $331,000. Total shares outstanding following this private placement will be 30,528,173.
Each Unit consists of one common share and one half common share purchase warrant allowing the holder to subscribe for one Share at a price of $0.40 for a period of two years from the subscription date. The Units will be subject to a four-month hold period.
The Company paid $13,000 in commissions and finder's fees, and issued 52,000 broker Warrants in connection with this private placement, in accordance with the rules and regulations of the TSXV.
The Company intends to utilize the proceeds from the private placement to finance the Company's operations in Utah and for working capital purposes.
In other news, subject to TSXV approval the Company has agreed to issue 1,504,962 common shares to Blue Note Mining at a deemed price of $0.20 each. These shares are being issued in settlement of a debt of $300,992.41 reflected in the Company's audited annual financial statements as at December 31, 2009. The debt results from Blue Note's payment of various invoices on the Company's behalf. The common shares issued to Blue Note will be subject to a four-month hold period.