Quaterra Signs Agreement with Freeport McMoRan for Singatse Peak Services Interest in Yerington

Quaterra Resources Inc. (TSXV:QTA,OTCQX:QTRRF) together with its subsidiaries Quaterra Alaska Inc. and Singatse Peak Services LLC have signed a membership interest option agreement with Freeport-McMoRan Nevada LLC which sets out terms for due diligence and for Singatse Peak’s exploration of its Yerington Copper Project in Nevada. Freeport-McMoRan Nevada LLC  is a wholly owned subsidiary of Freeport Minerals Corporation, which in turn is a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX).

As quoted in the press release:

Under the agreement, after conducting additional due diligence about SPS over the next year, Freeport has the right to earn an initial 55% interest in SPS by providing funds to SPS to complete three staged investigation and work programs totaling US$38,600,000 in project funding. During these stages, Freeport provides funding to SPS for property maintenance, G&A, environmental compliance and, in later stages, exploration. Freeport can earn a further 20% interest in SPS (increasing its holding to 75%) should it elect to fund SPS with a further US$100,000,000 of spending, or complete a feasibility study, whichever comes first.

Quaterra CEO, Steven Dischler, said:

The agreement with Freeport provides Quaterra with the ability of retaining, at no cost to it, a 25% interest in what is potentially a large and attractive district-scale copper asset.

Click here to read the Quaterra Resources Inc. (TSXV:QTA) press release