Wednesday, January 28, 2009

Portage Buys Ontario Iron Ore Properties

Portage Minerals Inc. has announced an agreement to buy the Cotton and Minnitaki Lake iron ore properties in Ontario.

The Cotton property is located in Cotton Township, 90 kilometres north of Sudbury and comprises seven contiguous unpatented mining claims totaling 74 claim units covering approximately 1,264 hectares. The Minnitaki Lake Property is located 13 kilometres south of Sioux Lookout and comprises 38 contiguous unpatented mining claims totaling 450 claim units covering approximately 7,769 hectares.

Under the terms of the agreement Portage will acquire a 100% interest in each of the properties in exchange for: $150,000 in cash; 15,000,000 common shares; and a 2% net smelter return royalty, 1% of the royalty can be purchased by Portage for $1,000,000. The cash component of the purchase price is payable upon Portage completing a financing (or financings) sufficient to complete the recommendations in the 43-101 technical report relating to the properties.

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