Portage Minerals Inc.

Portage Minerals Inc.

August 31, 2011 17:08 ET

Portage Closes Financing With the MineralFields Group

ST. ANDREWS, NEW BRUNSWICK--(Marketwire - Aug. 31, 2011) - Portage Minerals Inc. ("Portage" or the "Company") (CNSX:RKX) announced today that it has closed $1.0 million non-brokered private placement with the MineralFields Group. The Company also closed an additional $311,259 with other investors as part of the first tranche of the non-brokered private placement as announced on August 18th 2011.

"We are very pleased to be entering into this relationship with MineralFields Group", said Ken Hight, President and CEO. "This is an important milestone in the growth of Portage and we look forward to continuing to work with the MineralFields Group as we develop our gold holdings in the New Brunswick region."

The $1.3 million gross proceeds shall be used to fund its current exploration program and for working capital purposes. The Company issued 1,850,250 units and 9,713,126 flow-through units. Each unit consists of one common share and one-half common share purchase warrant. Each full common share purchase warrant is exercisable for a period of three years at an exercise price of $0.23. Each flow-through unit consists of one flow-through common share and one-half flow-through common share purchase warrant. Each full flow-through common share purchase warrant is exercisable for a period of three years at an exercise price of $0.24. The Company paid cash commissions of 7% and issued brokerage unit warrants equal to 7% of the units and flow-through units issued.

About Portage

Portage Minerals Inc. is a mineral exploration corporation exploring for gold in Eastern Canada. Further information about Portage can be accessed on the Company's website at www.portagemineralsinc.com and on the SEDAR website at www.sedar.com. The common shares of Portage are listed on the Canadian National Stock Exchange ("CNSX") as a mining issuer under the trading symbol "RKX".

About MineralFields

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver 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. The sector focus is on gold and precious metals, base metals, rare earths and lithium, potash, uranium, oil, coal and gas. 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 ®, and have raised over $1 billion in their ten year history.

To receive Company news releases via e-mail, please advise lauren@chfir.com and specify "Portage News" in the subject line.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. This forward-looking information includes, among others, statements regarding the private placement, the joint venture, exploration expenditures and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Portage and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward- looking information. The forward-looking statements contained in this news release are made as of the date hereof and Portage undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

CNSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Portage Minerals Inc.
    Ken Hight
    President and CEO
    (506) 529-8206
    (506) 529-8595 (FAX)

    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 x228
    (416) 868-6198 (FAX)