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Quaterra Resources (TSXV:QTA,OTCMKTS:QTRRF,FWB:QR2) subsidiary Singatse Peak Services LLC reported that Freeport-McMoRan Nevada LLC committed US$7.1 million toward option payments over the next 12 months. Singatse Peak Services plans to use these proceeds to fund exploration and further definition of the Bear deposit in Nevada.
The Bear deposit is one of three known copper deposits on Quaterra’s 51-square-mile property at Yerington. Quaterra has invested approximately $33 million in the Yerington District since 2006, including NI 43-101-compliant oxide and sulfide resources at both MacArthur and Yerington, and a preliminary economic assessment at MacArthur. Details of the drilling program at the Bear deposit is anticipated to be announced in the 3rd Quarter of 2015.
As quoted in the press release:
Freeport Nevada has recently concluded the first stage of an option agreement with Quaterra by making US$2.5 million in option payments over the past 12 months. SPS has used these funds on due diligence of land, water and mineral rights, and land maintenance, environmental compliance and G&A.
The upcoming 12-month period is part two of a three-stage agreement which gives Freeport Nevada an option to earn to a 55% interest in SPS by paying US$40.7 million in option payments to SPS over four years, starting in June 2014. Freeport Nevada can earn a further 20% in SPS (increasing its holding to 75%) by spending US$97.9 million or by funding SPS to complete a feasibility study, whichever comes first. Before then, Freeport Nevada can terminate the agreement at its discretion. Expenditures have been revised marginally from earlier amounts disclosed in a June 16, 2014, press release to address changes in property maintenance costs at Yerington.
“We are very pleased Freeport Nevada has elected to commit to an additional year of option payments. SPS has consolidated a sizeable land position covering the Bear target and we are now ready to commence exploration,” said Quaterra President and CEO Steven Dischler. “We have worked hard to position the Company and its shareholders for success and this is an exciting time for us all.”
Quaterra Chairman Thomas Patton said the Bear deposit is a high priority because of its large size, historic drilling and potential for higher grades than district averages. It is underexplored and open in several directions and at depth. “The Bear is a large porphyry copper system that located in one of the world’s top mining jurisdictions. The Yerington district has good existing infrastructure, a history of production and broad-based community support for responsible mining,” he said.
Click here to read the Quaterra Resources (TSXV:QTA,OTCMKTS:QTRRF,FWB:QR2) press release
Click here to see the Quaterra Resources (TSXV:QTA,OTCMKTS:QTRRF,FWB:QR2) profile.
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