In late morning trade shares in Miraflores-based Portage Resources had gained more than 12% after announcing a 10:1 future stock split that would, after cancellation of some of the shares held by its CEO, bring the total number in issue to a whopping 4.45 billion.
When MINING.com reported on Portage Resources a fortnight ago the counter had gone from 2c to 65c a share in the matter of three months. The explorer has been snapping up properties in Peru hitting pay-dirt with reserves of 58 million ounces of silver at one of them. Portage is a prime example of how volatile stocks in juniors miner can be: its 52-week high is $1.24 and despite Monday’s 12% jump to 32c, the stock is worth half of what it was just five trading days ago.
The company is based in Miraflores, Lima and its properties include a concession near the massive Antamina Mine located in the Ancash Region, but what has really put the counter on a rollercoaster ride was the June 24 announcement of the results of the NI 43-101 report for its Wukakuy properties. The studies showed 58 million ounces worth of silver reserves which at today’s price would be worth some $2.3 billion.
Peru is the world’s largest producer of silver and recent political turmoil in Peru – including the revoking of Canada’s Bear Creek’s licence for its silver mine in late June after protests killed five people – appears not to have slowed down investment in the mining sector there. A mooted windfall tax on miners and royalty changes may still affect resource companies’ operations there as a new left-wing president took office over the weekend.
LIMA, Peru, Aug. 1, 2011 – Portage Resources Inc. (“Portage” or the “Company”) (POTG-OTCQB) announces a significant share cancellation, dividend payable and other material changes to the company.
On July 27, 2011, the Board of Directors unanimously approved a dividend whereby the shareholders of Portage Resources Inc. (the “Company”) will receive a dividend payable as a ten for one (10:1) forward split of the issued and outstanding shares of Common Stock of the Company pursuant to Section 78.215 of the Nevada Revised Statutes.
The Record Date of the Forward Split was set as August 8, 2011 and the Effective Date and Payment Date is set as August 10, 2011. The dividend to be paid to the shareholders of record is payable upon surrender. Therefore, in order to receive the dividend shares the shareholders of record must surrender their existing shares to the transfer agent and will receive 10 new shares of the Company for each 1 share surrendered.
The effective date and the payment date is subject to FINRA approval and the Company will announce the payment date when such approval is received.
Further, as part of this approved action of the Board of Directors, the Company’s Executive Officer, Mr. Paul Luna Belfiore has agreed to return a total of 230,000,000 restricted shares to treasury for cancellation prior to the record date, which would leave a total of 445,200,000 shares issued and outstanding as at the record date.
The dividend shares when issued will increase the Company’s issued and outstanding common shares to 4,452,000,000 common shares, all with par value of $0.001.
The complete 8k filing is available at: