Portage Minerals Inc.
CNSX : RKX

Portage Minerals Inc.

September 06, 2011 17:52 ET

Portage Minerals Inc. Closes Second Tranche, Restructures Debt and Retires Obligations

ST. ANDREWS, NEW BRUNSWICK--(Marketwire - Sept. 6, 2011) - Portage Minerals Inc. ("Portage" or the "Company") (CNSX:RKX) announced today that it has closed $150,000 as the second tranche of the non-brokered private placement as announced on August 18th 2011. The Company also announced today that it has extended the maturity date of $559,348 of notes to February 2013 from November 2011.

The Company also announced today that it has retired $325,533 of outstanding obligations and a $14,912 promissory note through the issuance of 2,764,686 units and 436,115 flow-through units made in addition to the 1,428,571 units issued as the second tranche of the non-brokered private placement. $283,785 of the outstanding obligations settled were to directors and officers. The issue prices of the units and flow-through units were $0.105 and $0.115 respectively. 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.

According to Ken Hight, President and CEO of Portage, "The two tranches of the private placement announced last week and today, the extension of the maturity of the notes, and the conversion of certain outstanding liabilities will leave Portage with positive working capital. Portage is commencing a new drilling program to further advance its gold properties."

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".

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)
    www.portagemineralsinc.com

    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 x228
    (416) 868-6198 (FAX)
    robin@chfir.com