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Goldcorp agrees to fund US$10 mln exploration program at Quaterra properties for stake in projects

Last updated: 20:02 10 Feb 2010 GMT, First published: 21:02 10 Feb 2010 GMT

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Quaterra Resources (TSX-V: QTA, NYSE Amex: QMM) has entered into a binding investment framework agreement (IFA) with Goldcorp (TSX: G, NYSE: GG) to provide it with an option to acquire an interest in certain mining properties held or acquired by Quaterra in Mexico in return for funding a two-year exploration program by the company through a private placement investment of US$10 million.

Under the IFA, Goldcorp has an option to acquire up to 65% in any property held by Quaterra in central Mexico except Nieves by spending US$2 million on top of the already closed US$4 million placement over a two year period on advanced exploration on that property and by completing a feasibility study.

Goldcorp will then solely fund operations at the property until a production decision is made, when Quaterra will be responsible for contributing its proportionate share of expenditures.

“We are excited to be working with Goldcorp in central Mexico. The agreement allows us to focus on finding large precious metal deposits and positions Goldcorp with its financial strength and technical expertise to develop them,” said president and chief executive of Quaterra, Thomas Patton.

The IFA currently includes 12 properties covering over 950 square miles. Quaterra said that exploration will focus on discovering large Penasquito-style gold-silver deposits as several of the early-stage properties, most notably Sabino and Onix, have Penasquito-type potential.

Ground geophysics are currently in progress, with drilling planned for the second quarter of 2010.

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