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Quaterra Resources Inc. (TSX VENTURE:QTA - News; NYSE Amex:QMM) today announced it has signed an earn-in
agreement with Freeport-McMoRan Mineral Properties Inc. ("FMMP") of
Phoenix, Arizona, in respect of the Company's Cave Peak, Texas, molybdenum
project.
In the terms of the agreement, FMMP has
the exclusive right and option to acquire a 70% ownership interest in the
Cave Peak project by paying 2011 land holding costs on behalf of the Company
and by subsequently spending US$5 million on exploration over four years
ending in 2015. Except for the 2011 land holding costs, which are a firm
commitment, all other exploration expenditures are optional.
Upon FMMP earning a 70% interest in the
Cave Peak project, the parties have agreed to joint venture further
exploration and, if warranted, development of the Project on a 70/30 basis
with FMMP either funding Quaterra's share of costs
through to delivery of a bankable feasibility study or converting its
interest to a 1% net smelter returns royalty if it determines not to deliver
such a feasibility study. The joint venture will be on standard terms
including dilution for failure to contribute a party's share of costs. FMMP
will be the initial operator under the joint venture.
The Cave Peak property covers 523.7
acres located 35 miles north of Van Horn in Culberson County, Texas, and
includes all or parts of three breccia pipes, one
of which was drilled in the 1960s by Union Carbide Corporation and contains
significant molybdenum mineralization. Historic drill hole and resource
information is contained in the Company's news release dated July 22, 2008.
Quaterra Resources Inc. is a junior exploration
company focused on making significant mineral discoveries in North America.
The Company uses in-house expertise and its extensive network of consultants,
prospectors and industry contacts to identify,
acquire and evaluate prospects in mining-friendly jurisdictions with the
potential to host large and/or high grade base metal, precious metal or
uranium deposits.
On behalf of the Board of Directors,
Dr. Thomas Patton, President and CEO, Quaterra Resources Inc.
Some statements contained in this news
release are forward-looking statements within the safe harbor of the Private
Securities Litigation Reform Act of 1995. These statements generally are
identified by words such as the Company "believes",
"expects", and similar language, or convey estimates and statements
that describe the Company's future plans, objectives or goals. Since
forward-looking statements are based on assumptions and address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Further information regarding risks and uncertainties which
may cause results to differ materially from those projected in
forward-looking statements, are included in filings by the Company with
securities regulatory authorities. Readers are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the date
thereof. The Company does not undertake to update any forward-looking
statement that may be made from time to time except in accordance with
applicable securities laws. References may be made in this press release to
historic mineral resource estimates. None of these are NI 43-101 compliant
and a qualified person has not done sufficient work to classify these
historic estimates as a current mineral resource. They should not be relied
upon and Quaterra does not treat them as current
mineral resources.
Cautionary Note to U.S. Investors - The
United States Securities and Exchange Commission permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms on this website (or press release), such as
"measured", "indicated," and "inferred"
"resources", which the SEC guidelines generally prohibit U.S. registered
companies from including in their filings with the SEC. U.S. Investors are
urged to consider closely the disclosure in our Form 40-F which can be
requested from us, and is available on our website at www.quaterra.com and at
www.sec.gov/edgar.shtml.
Neither the TSX Venture Exchange nor its
Regulation Services Provider or the NYSE Amex have not reviewed and do not
accept responsibility for the adequacy or accuracy of the contents of this
news release, which has been prepared by management.
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