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Quaterra Resources (TSXV:QTA,OTCMKTS:QTRRF,FWB:QR2) announced it had sold three non-core assets to Freeport-McMoran in a deal worth USD $5 million. The deal gives Quaterra’s remaining interests in its Southwest Tintic, Utah and Butte Valley, Nevada copper projects and Cave Peak project to Freeport.
According to the press release:
Quaterra has also issued 19 million non-transferable share purchase warrants to Freeport, each such warrant entitling Freeport to purchase one common share of Quaterra at a price of US$0.16 per share for five years, subject to vesting and termination provisions corresponding to the payment of the Purchase Price in tranches.
Of the US$5 million Purchase Price, US$1 million has been paid upon closing with the balance payable in US$500,000 tranches (subject to adjustment in certain circumstances) every quarter commencing January 1, 2015. The 19 million warrants are exercisable for five years with 20% having vested upon closing and 10% vesting upon each quarterly payment of the Purchase Price. In the event of any failure to pay a quarterly payment of the Purchase Price, any unvested warrants will terminate; conversely, upon any accelerated payment of the balance of the Purchase Price any unvested warrants will vest. The warrants and any shares issued on exercise of the warrants are subject to a 4-month hold period expiring February 4, 2015.
Click here to read the Quaterra Resources Inc. (TSXV:QTA,OTCMKTS:QTRRF,FWB:QR2) press release
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