Quaterra Selling Three Assets to Freeport

Quaterra Resources (OCTQX:QTRRF) sold its US subsidiaries’ interest in three non-core copper and molybdenum assets to Freeport-McMoRan Mineral Properties Inc. for US$5 million as well as 19 million share purchase warrants.

According to the press release:

Of the US$5 million Purchase Price, US$1 million is to be 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% vesting on the closing date and 10% vesting upon each quarterly payment of the balance of the Purchase Price

Thomas Patton, Quaterra chairman, said:

This transaction provides assured funding for Quaterra’s working capital through cash and potential warrant exercises that are not immediately dilutive.

Click here to read the Quaterra Resources Inc. (OCTQX:QTRRF) press release.