Quaterra Resources (QTA-V)
www.quaterra.com
154 million o/s
$2.5 million in the bank (as of Oct 9, 2012)
quaterra.com
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Quaterra Resources sells Butte Valley to Freeport
Oct 4, '12 - News Release
Quaterra Resources Inc. has sold the Butte Valley porphyry copper prospect to Freeport-McMoRan Mineral Properties Inc. (FMMP). FMMP has paid Quaterra $2-million (U.S.), with a contingent acquisition bonus of $1-million (U.S.) possible in the future if FMMP acquires certain additional designated properties in the area. Quaterra also retains the right, if and when FMMP completes a positive feasibility study, to elect to have either a 30-per-cent working interest in the project or a 2-per-cent net smelter returns royalty.
"The Butte Valley sale is the first of what I hope will be several transactions to monetize the company's non-core assets," says Quaterra's president Tom Patton. "We have retained substantial upside in the event that FMMP makes a significant discovery."
Mr. Patton said the cash from the transaction will be used to continue work on the company's district-scale, 100-per-cent-owned Yerington copper project.
Butte Valley is a large, partially explored porphyry copper system located in eastern Nevada about 40 miles north of Ely in north-central White Pine county. The FMMP purchase includes 1,442 unpatented claims staked by Quaterra and assignment of its rights to an additional 41 claims held under lease from a prospecting syndicate.
Quaterra also announced a modification to FMMP's earn-in requirement on its Southwest Tintic porphyry copper prospect in Juab county, Utah. The time for FMMP to complete aggregate expenditures of $3.25-million (U.S.) and $4,725,000 (U.S.) has been extended by one year to Aug. 29, 2013, and Aug. 29, 2014, respectively. As of Aug. 15, 2012, FMMP has spent a total of $3-million (U.S.) on the project.
Corporate update
Robert Gayton has resigned from the board of directors of Quaterra effective Sept. 30. Mr. Gayton was appointed to the board in 1997 and was chairman of the audit committee. Anthony Walsh, currently a member of the audit committee, will be replacing Mr. Gayton as chairman of the audit committee. Todd Hilditch will be appointed to the committee. Mr. Gayton's position on the board will not be replaced.
"We would like to thank Mr. Gayton for his untiring commitment and dedication in fulfilling his role as a director of Quaterra," says Quaterra president and chief executive officer Tom Patton. "We are confident that Mr. Walsh will be a more than able replacement."
Gerald Prosalendis has also resigned as vice-president, corporate development of the company. He will continue working for the company as consultant.
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