Portage Minerals Inc. gains major properties

It has been announced by Portage Minerals Inc. that it is on the verge of acquiring the Cotton and Minnitaki Lake iron ore properties and has entered into an agreement with it in the recent days. The agreement along with the approach of the company has been hailed by professionals and is looked as a noble step to mitigate severe afflictions owing to the ongoing downturn.

It is to be noted that the cotton property is located in Cotton Township, 90 kilometers north of Sudbury, Ontario and does consist of seven neighboring unpatented mining claims totaling 74 claim units covering approximately 1,264 hectares. On the other hand, the Minnitaki Lake Property is situated at 13 kilometers south of Sioux Lookout, Ontario. It includes 38 contiguous unpatented mining claims totaling 450 claim units covering approximately 7,769 hectares.

Let’s concentrate on the terms of agreement. According to it, Portage Minerals Inc. will get hold of a 100% interest in both the properties in exchange for $150,000 in cash; 15,000,000 common shares; and a 2% net smelter return royalty. Well, it is also set that 1% of the royalty can be purchased by Portage for $1,000,000. When will the component of the purchase price be payable? It has been found that the component of the purchase price will become payable whenever Portage completes the financing that is sufficient to complete the recommendations in the 43-101 technical report relating to the properties.

There have also been major changes Portage Minerals Inc. with regard to the acquisition. Among the bigwigs the directors and officers Peter Taylor and Daniel will give up their jobs. Well, Mr. George Cole has resigned as President as well but it is also set that he will be in the company as a director. On the other hand both of Mr. Chris Irwin and Terry Loney will be appointed to the board.