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Quaterra Resources (TSXV:QTA) seeks $3M for exploration in Alaska and Nevada

Mining
TSX:QTA
23 September 2020 12:29 (EDT)

Quaterra Resources (QTA) is looking to raise C$3 million in a private placement to fund exploration work at its projects in the United States.

Under the terms of the placement, the Vancouver-based copper-gold company intends to issue up to 30 million units at a price of $0.10 each. These units will be comprised of one common share in Quaterra and half of one common share purchase warrant.

Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.15 over a period of three years from the date of issuance.

The proceeds are expected to fund target selection and drilling work at Quaterra’s 54,880-acre Groundhog copper project in Alaska. The property sits next to Northern Dynasty Minerals’ prolific Pebble deposit, which is considered to be the most significant undeveloped copper and gold resource in the world.

According to a technical report on the Groundhog Project, released on May 13, 2020, the property is thought to host a similar copper-gold porphyry system that features similar mineralisation to the Pebble deposit.

The report states that Groundhog’s “close proximity to the Pebble copper-gold porphyry deposit and presence on the project of geologically correlative units means that Groundhog has excellent potential to host similar mineralisation.”

A portion of the proceeds will also be used for exploration at Quaterra’s Yerington Project in Nevada, where the company is making progress towards a prefeasibility study at the MacArthur copper deposit.

This work is expected to include resource modelling, mine plan design and metallurgical testing.

Quaterra Resources (QTA) is currently down 5.56 per cent and is trading at 8.5 cents per share at 11:16am EDT.

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