Quaterra Resources Inc. (QTA:TSX.V; QTRRF:OTCQX) announced in a news release its subsidiary Singatse Peak Services LLC closed the sale to an agricultural company of certain primary groundwater rights tied to its Yerington, Nev., property for $6.02 million, a transaction that is nondilutive to shareholders.
After the closing, Singatse Peak holds about 6,700 acre feet per year of primary groundwater permitted for mining and milling on its 51-square-mile Yerington property. Quaterra considers this amount sufficient for its MacArthur copper deposit, also on the Yerington acreage, which, for a 41,000 ton per day (41 Ktpd) oxide project, would require about 2,590 acre feet per year of water, and for mining and operation of a 50 Ktpd a sulfide mill operation would need an estimated 3,100 acre feet of water.
The remaining water rights are worth about $20 million based on the price set in the sale, the release noted. Also, Singatse Peak "has substantial decree, supplemental and storage water rights associated with private land that it has under option."
Quaterra will use the revenue from the water rights sale to advance MacArthur, to derisk the entire Yerington property, to evaluate other exploration possibilities and for general and administrative expenses. Efforts at MacArthur will include metallurgical work, resource development and mine plan optimization, all for the prefeasibility study.
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