Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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.
Press Release:
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:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8063821
20 Comments
Jtrenee
why this dumb move must be a scam to dump all the way to .0001 can make more money now.
novice
how do shareholders surrender shares to “transfer agent”?
CAl
I own 2500 shares of POTG what is going to happen to my little stock?
Carl
Jburgessjk
Did you get an answer?
Frankhoush
1. To answer a previous question when the stock finally splits your broker will return your shares and you will receive back 10 shares for every 1 share. Based on price of stock at the appointed time it will be divided by 10 of the current value.
Additionally I would like to point out to share holders that Postage just went public there will be alot of markets up and downs and the company will need to take profits from shares for growth in personnel, equipment etc … it cost to get the minerals out of the ground. I have veiwed other gold mines as upwards on the average of 100-132 dollars a ounce .. it will be intersting to track informative quarterly reports and cost projections. And for the people yelling scam they don’t relize these matters and only want instant gratification. So not to be disappointed look at this as a long investment with a 6-12 month period to get the good stuff out of the ground. Then that would be the time to really watch those earning reports. That’s my personal feelings and I believe in giving them room to breath.
Frankhoush
JTRENEE ref the. 0001 ask your broker about that as I did it is just a place marking referance on the ledger books and nothing to worry about…all companies say that as a referance per my broker
Frankhoush
Carl your stock should split to 25,000 shares and be worth 1/10 value at time of split ..if shares of 2500 was worth as example a dollar a then after split at 25,000 shares would be worth 10 cent a share .. the value is exactly the same … but you have more shares to let grow in value
Frankhoush
Novice your broker whom you bought your shares thru will do this split automatically scott grade is my broker and they do it for me.. check with your broker
Frankhoush
FYI ALL I hate automatic spell checks that. Hangs my words lol sorry for the mis spells
Frankhoush
Jope you can read typoneese lol
Frankhoush
I would lime to point there is a strong possibility of those that yell scam can in fact be traders trying to knock down a price on shares so they can buy low.. nothing beats good common sense and old fashion research. Never buy or sell on rumors and have patients and be deligent.
ratto
does anyone know when this stock is actually gonna split? i thought it was supposed to go down on the 10th
FrankHoush
Well here it is 22 of Aug and still no split .. I think I will contact FINRA directlly and find out from them results of this split request .. If I find out anything from my enquiry I will let you all know…
Frankhoush
FINRA’s number for future inquiries is 1-800-289-9999 from 8am to 8 pm eastern time
Frankhoush
Well called FINRA this morning and asked about for information irt the split. FINRA’s response was that the question I had asked was propriety information but they did say that as soon as the split was effective it would be posted at OTCBB.COM. I went there and read the news on Jul 28th POTG made the filing for the stock split..based on previous filings it takes about 30 days for paperwork to be responded to. This would make it about the 29th of this month for the split to come out so keep your hopes up it happens then .. have fun investing..
Frankhoush
I see POTG has started their bear run .. all I can say is go baby go lol does the happy dance
Frankhoush
I have sent numerous emails to Portage Resources about the sit they say they are going back and forth with FINRA and that you will see your shares increased when the split comes thru. It is starting to sound more like a tease than anything. Secondly I and trying to hold them to the cross irt production. They have supposedly acquired mines you would think that they would be producing to be able to buy other mines. We all need to ask where is the production especially sense they already have mines..where is the quarterly report? They are asking for a $3 million dollar loan at this point per news. At this point that would be 118 pounds of gold on todays market(I’m not far off). We need to know about production!
Frankhoush
3million dollar loan andddd a ritzy new office and if you look at their web site in the pics I they appear to be surveying in a Mercedes. Come on .. I want to see production not lavishness
Hhauser
I own 2200 shares hhause
Bud
…and then they cancel the stock split…how nice for us