Quaterra Resources Inc. Announces that Freeport-McMoran Nevada LLC
Signs Agreement With Quaterra to Earn Interest in Singatse Peak
Services LLC, Holder of Yerington Project
Freeport has option to earn up to a 75% interest in Singatse
Peak Services for US$138.6 million in spending
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 16, 2014) -
Quaterra Resources Inc. ("Quaterra" or the
"Company")(TSX-VENTURE:QTA)(OTCQX:QTRRF) and its subsidiaries
Quaterra Alaska Inc. ("Quaterra Alaska") and Singatse Peak Services
LLC ("SPS") have signed a membership interest option agreement with
Freeport-McMoRan Nevada LLC which sets out terms for due diligence
and for SPS's exploration of its Yerington Copper Project in Nevada
(the "Yerington Project"). Freeport-McMoRan Nevada LLC ("Freeport")
is a wholly owned subsidiary of Freeport Minerals Corporation,
which in turn is a wholly owned subsidiary of Freeport-McMoRan
Copper & Gold Inc. ("FCX").
Under the agreement, after conducting additional due diligence
about SPS over the next year, Freeport has the right to earn an
initial 55% interest in SPS by providing funds to SPS to complete
three staged investigation and work programs totaling US$38,600,000
in project funding. During these stages, Freeport provides funding
to SPS for property maintenance, G&A, environmental compliance
and, in later stages, exploration. Freeport can earn a further 20%
interest in SPS (increasing its holding to 75%) should it elect to
fund SPS with a further US$100,000,000 of spending, or complete a
feasibility study, whichever comes first.
Quaterra President and CEO Steven Dischler says, "The agreement
with Freeport provides Quaterra with the ability of retaining, at
no cost to it, a 25% interest in what is potentially a large and
attractive district-scale copper asset."
Agreement
Details
Within the first 12-month stage of the agreement, Freeport must
provide SPS US$2,500,000 for land, water and mineral rights title
acquisitions and maintenance costs; G&A; and compliance with
environmental laws. Freeport can terminate the agreement within the
first stage of the agreement at its discretion, with the
US$2,500,000 being a firm commitment. Freeport can extend stage one
of the agreement for up to a further 12 months upon payment of
US$1,250,000 for each six month extension.
In order for the second stage of the agreement to commence,
Freeport must commit to fund US$6,100,000 over the ensuing
post-stage one 12 month period for property maintenance costs;
G&A; environmental compliance; and exploration of the property.
During the 24 month third stage of the agreement Freeport may fund
up to US$30,000,000 for exploration of the property; property
maintenance costs; G&A; and environmental compliance. If
Freeport completes the stage three funding it will have invested
approximately US$40,000,000 in the Yerington Project and will have
earned the right to own a 55% interest in SPS.
If Freeport chooses to proceed beyond Stage 3, it can elect to
fund a further US$100,000,000, or fund the costs of completion of a
feasibility study, to earn an additional 20% interest for a total
75% interest in SPS. Alternatively, Freeport can choose to fund
with Quaterra, proportional to their 55% and 45% working
interests.
At any time when the parties are proportionally funding their
share of costs, and before an affirmative decision to begin
production, a non-funding party will suffer ordinary dilution.
Should either party's interest fall below 10%, it will be converted
into a 1% NSR royalty. After a production decision, a non-funding
party will dilute to a 1% NSR royalty.
"We believe this is a very significant opportunity for
Quaterra," says Dr. Thomas Patton, Chairman of Quaterra. "The
agreement provides Quaterra's shareholders with the funding to
advance a major copper district."
The Yerington Project consists of the Yerington pit and
surrounding areas, MacArthur oxide and sulfide deposits, water
rights and other district prospects, all of which have the
potential to be transformed into a large-scale, long-life copper
mining operation. It is situated in a mining-friendly district with
excellent infrastructure and valuable water rights.
Conference Call
Quaterra will host a conference call on Tuesday, June 17, 2014
at 1:30 pm Pacific Time (4:30 pm Eastern Time) to discuss today's
release of the membership interest option agreement between
Freeport and the Company, Quaterra Alaska and SPS for exploration
and development of the Yerington Project.
The Company will also answer questions at the end of the formal
portion of the call. For toll free dial-in from Canada and U.S.
please call 1-800-319-4610, from Vancouver call 604-638-5340 and
from outside of Canada and the U.S. call 1-604-638-5340. Callers
should dial in five to 10 minutes prior to the scheduled start time
and simply ask to join the call.
About Quaterra Resources Inc.
Quaterra Resources Inc. (TSX-VENTURE:QTA)(OTCQX:QTRRF) is a
junior exploration and development company with a successful track
record of making significant mineral discoveries in North America.
The Company's primary objective is the advancement of its flagship
projects in the Yerington copper district, Nevada.
On behalf of the Board of Directors,
Steven Dischler, President & CEO
Quaterra Resources Inc.
Disclosure note:
Some statements contained in this news release are
forward-looking statements under Canadian securities laws and
within the safe harbor of the U.S. Private Securities Litigation
Reform Act of 1995. These statements generally are identified by
words such as the Company "believes", "expects", and similar
language, or convey estimates and statements that describe the
Company's future plans, objectives or goals. Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Assumptions include that the transaction provides a
significant opportunity for the Company. Further information
regarding risks and uncertainties which may cause results to differ
materially from those projected in forward-looking statements, are
included in filings by the Company with securities regulatory
authorities. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date
thereof. The Company does not undertake to update any
forward-looking statement that may be made from time to time except
in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Mr. Steven Dischler, President & CEOQuaterra Resources
Inc.775-463-9600
Quaterra Resources (TSXV:QTA)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Quaterra Resources (TSXV:QTA)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024