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Quaterra Announces Agreement With Freeport-McMoRan Nevada LLC to Extend Funding of Yerington Copper Project, Nevada
VANCOUVER, BC--(Marketwired - June 13, 2016) - Quaterra Resources Inc. ("Quaterra" or the "Company") and its subsidiary Singatse Peak Services LLC ("SPS") today
About this update from Lion Copper And Gold Corp
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - June 13, 2016) - Quaterra Resources Inc. (\"Quaterra\" or the \"Company\") and its subsidiary Singatse Peak Services LLC (\"SPS\") today announced they have reached an agreement with Freeport-McMoRan Nevada LLC (\"Freeport Nevada\") to extend the current Stage 2 of Freeport Nevada's option to acquire an interest in the Company's Yerington Copper Project in Nevada for up to two years by Freeport Nevada making option payments totalling $5.75 million. Freeport Nevada is a wholly owned subsidiary of Freeport Minerals Corporation, which in turn is a wholly owned subsidiary of Freeport-McMoRan Inc. (NYSE: FCX). In terms of today's agreement, Stage 2 of Freeport Nevada's earn-in option, which commenced in June last year, can be extended for up to four additional periods of six months each by Freeport Nevada making the following payments to SPS: $1.8 million on June 13, 2016; $1.25 million on December 13, 2016; $1.35 million on June 13, 2017; and $1.35 on December 13, 2017. (All amounts are expressed in U.S. dollars). SPS intends to use the Freeport Nevada's option payments for property maintenance, G&A and environmental compliance at its Yerington Copper Project. Freeport Nevada will have the right to terminate the agreement at any time with 60 days' notice. During the two-year extension period, SPS may propose special exploration programs, including work plans and budgets, to be undertaken with Freeport Nevada's agreement under an annual drilling program. These programs will be funded by Freeport Nevada, at its discretion, through accelerated option payments. The Stage 2 extension option payments and any accelerated option payments will reduce the payments required for Freeport Nevada to earn its initial 55% interest in SPS. SPS will continue to initiate and self-fund desktop studies to assess the over-all development potential at Yerington, and surface work including geophysical surveys to better understand the Bear porphyry copper deposit, one of three known copper deposits on the Company's 51-square mile Yerington land package. Geophysical surveys will also assist in future drill site selection. Freeport Nevada has the option to participate in these studies as part of due diligence. \"We welcome the opportunity to continue working with Freeport Nevada at Yerington and appreciate its confidence and ...