Quaterra Resources Inc (TSX-V:QTA) announced the completion of an oversubscribed third and final tranche of its non-brokered private placement. It also entered into a non-binding letter of intent with Houston Minerals Ltd with an option to acquire interests in its British Columbia-based properties.
The Vancouver, British Columbia-based company shared with its investors that proceeds from the private placement transaction will be used to further the company’s asset — primarily Quaterra’s MacArthur copper oxide project in Nevada — and general working capital.
Quaterra issued 29,832,834 units at US$0.06 per unit for gross proceeds of US$1,789,970. Combined with the first two tranches, the mining firm has raised a total of US$4,128,140.
Each unit consists of one common share and one non-transferable share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of US$0.10 per share for a period of three years.
Quaterra said that it also paid US$110,388 and issued an aggregate of 1,839,798 finder's warrants as finder's fees for the completion of the third tranche of the private placement, exercisable at the same rate as common shares.
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The mining company also announced that it has entered into a non-binding letter of intent with Houston Minerals Ltd, which gives Quaterra an option to acquire a 100% interest in the Chaco Bear property located east of the Golden Triangle of British Columbia, and the Ashton Property located near Lytton, BC.
"B.C. Properties represent an exciting opportunity to create value for our shareholders. The Chaco Bear Property appears to be a compelling analogue to the world-class Eskay Creek gold deposit and we look forward to further exploring this potential,” said Travis Naugle, CEO of Quaterra in a statement.
He added that the Ashton property represents one of the earliest staked properties in the emerging Spences Bridge Gold Belt. “We believe it to be a prime exploration opportunity, with multiple drill targets already identified."
The BC-based properties comprise 19 mineral claims covering 7,975.46 hectares and are subject to a 2.5% net smelter return royalty (NSR) on each property.
Prior to feasibility, Quaterra may reduce the NSR to 1.0% on the Chaco Bear property in consideration for payment of C$6 million and 1.0% on the Ashton property for payment of C$3 million, the statement added.
Post-feasibility, the company may purchase the remaining 1.0% NSR on the Chaco Bear Property for C$12 million and the remaining 1.0% NSR on the Ashton Property for C$6 million.
Contact Ritika at ritika@proactiveinvestors.com