Explorer to Use Sale Revenue to Advance Its Copper Project in Nevada

Source: Streetwise Reports   03/06/2019

The $6.02 million water rights transaction entered into in September 2018 is now closed.

Quaterra Resources Inc. (QTA:TSX.V; QTRRF:OTCQX) announced in a news release its subsidiary Singatse Peak Services LLC closed the sale to an agricultural company of certain primary groundwater rights tied to its Yerington, Nev., property for $6.02 million, a transaction that is nondilutive to shareholders.

After the closing, Singatse Peak holds about 6,700 acre feet per year of primary groundwater permitted for mining and milling on its 51-square-mile Yerington property. Quaterra considers this amount sufficient for its MacArthur copper deposit, also on the Yerington acreage, which, for a 41,000 ton per day (41 Ktpd) oxide project, would require about 2,590 acre feet per year of water, and for mining and operation of a 50 Ktpd a sulfide mill operation would need an estimated 3,100 acre feet of water.

The remaining water rights are worth about $20 million based on the price set in the sale, the release noted. Also, Singatse Peak “has substantial decree, supplemental and storage water rights associated with private land that it has under option.”

Quaterra will use the revenue from the water rights sale to advance MacArthur, to derisk the entire Yerington property, to evaluate other exploration possibilities and for general and administrative expenses. Efforts at MacArthur will include metallurgical work, resource development and mine plan optimization, all for the prefeasibility study.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Quaterra Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Quaterra Resources. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Quaterra Resources, a company mentioned in this article.

( Companies Mentioned: QTA:TSX.V; QTRRF:OTCQX,
)