Quaterra Resources Inc.: Exhibit 99.1 - Filed by newsfilecorp.com
April 25, 2017
QTA:TSXVENTURE
QTRRF:OTCQB
NR-05-17
QUATERRA ANNOUNCES OPTION TO ACQUIRE ALASKAN COPPER PROSPECT
Partners with Alaska
Earth Sciences and Kijik
village corporation to
explore
porphyry copper
belt 200 miles SW
of Anchorage
VANCOUVER, B.C. — Quaterra Resources Inc. (“Quaterra” or “the
Company”) today announced it has signed a lease agreement with Chuchuna Minerals
Company (“Chuchuna”), an Alaska corporation, giving it an option to purchase a
90% interest in the Groundhog copper prospect, a 40,000-acre property situated
on an established copper porphyry belt 200 miles southwest of Anchorage, Alaska.
Groundhog is located on State of Alaska claims covering the
northern extension of a 10-kilometer wide north-northeast trending structural
zone that hosts a number of porphyry copper-gold prospects, including the large
Pebble porphyry copper, gold and molybdenum project, which is approximately
three miles south of the Groundhog claim boundary. Regional magnetic data
suggest that geology similar to that at Pebble extends under cover for an
additional 30 kilometers northeast from the Pebble deposit.
Five years of geologic, geochemical, and geophysical studies
conducted on the property by a major international mining company, have
identified a number of large, high priority, magnetic and induced polarization
(IP) targets. It is the intention to evaluate these this summer by mapping,
sampling, additional IP and drilling.
Chuchuna, established in 2014, is owned by Kijik Corporation
(“Kijik”), and Alaska Earth Sciences (“AES”). Kijik is the ANSCA village
corporation for the community of Nondalton that is the adjoining landowner to
Groundhog. AES is an Anchorage-based mineral exploration company whose
principals have more than 40 years of experience throughout Alaska, and have
been involved in major discoveries including the Donlin Creek gold deposit.
Quaterra is committed to funding $1 million for exploration in
the first year of the agreement, and a minimum of $500,000 in each of the
following four years. Quaterra can earn its 90% interest in Groundhog by
providing a total of $5 million in funding for exploration over five years, and
by paying Chuchuna a lump sum of $3 million by the end of the fifth year.
Quaterra has no obligation to exercise its option and can terminate the
agreement at its discretion annually. (All amounts are expressed in U.S.
dollars). Chuchuna will be the operator of the project and will plan, implement
and manage exploration field programs as set out in a budget and work plan
approved by Quaterra.
If Quaterra exercises its option to acquire 90% of Groundhog,
Chuchuna and Quaterra will enter into a joint venture agreement. Chuchuna will
retain a 10% interest in the property carried to production, and a net smelter
returns (NSR) royalty of 1.75% . Within the first ten years Quaterra may
purchase 50% of the NSR royalty by paying Chuchuna $25 million.
“The Groundhog project offers the potential to discover a major
deposit in an established porphyry belt,” says Quaterra Chairman and CEO Tom
Patton. “With this deal, Quaterra has partnered with a local exploration team
that has demonstrated previous exploration success, and with a village
corporation that is grounded in the local community and has built strong
relationships with its surrounding neighbors and governance authorities.”
Quaterra President and COO Gerald Prosalendis says that
Quaterra remains focused on its flagship Yerington copper project in Nevada
where it has recently commenced a 20,000-foot drill program, but is excited by
the prospects in Alaska at Groundhog. “Through our subsidiary Singatse Peak
Services, we are the operator at Yerington. Chuchuna will be the operator at
Groundhog.” He says that Quaterra has been looking for exploration opportunities
that come with large-scale potential, credible partners, community support,
valuable data and that can be acquired on reasonable terms in order to position
itself ahead of a possible turn in the copper market. “We believe this deal
fulfills those requirements.”
Quaterra’s interest in new exploration opportunities follows
management’s view that the prolonged downturn in commodity markets may be
easing, with a resultant improvement in the price of copper, Quaterra’s key
underlying commodity. The Company will continue to seek and review similar
opportunities located in stable jurisdictions.
Southwest Alaska is a mineral-rich region of the state that has
attracted the attention of some of the largest mining companies and mine finders
in the world including Anglo American, Barrick Gold, BHP Billiton,
Freeport-McMoRan, Newmont Mining, Novagold and Rio Tinto.
About Quaterra Resources Inc.
Quaterra Resources Inc. (TSX-V: QTA; OTCQB: QTRRF) is a copper
exploration and development company with the primary objective of advancing its
U.S. subsidiary’s copper projects in the Yerington District, Nevada. The Company
also looks for opportunities to acquire copper projects on reasonable terms that
have the potential to host large mineral deposits attractive to major mining
companies.
Technical information in this news release has been approved by
Thomas Patton, Ph.D., the CEO of the Company, and a Qualified Person as defined
in NI 43-101.
| On behalf of the Board of Directors, |
| Thomas Patton, Chairman & CEO |
| Quaterra Resources Inc. |
| |
| For more information please contact: |
| Thomas Patton, Chairman & CEO |
| Quaterra Resources Inc. |
| 604-641-2758 |
| |
| Gerald Prosalendis, President and COO |
| Quaterra Resources Inc. |
| 604-641-2780 |
Disclosure note:
Some statements contained in this
news release are forward-looking statements under Canadian securities laws and
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
These statements are identified in this news release by words such as “will”,
“may”, “intends”, “offers the potential”, “suggests”, and similar language, or
convey estimates and statements that describe the Company’s future plans,
objectives, potential outcomes, expectations, 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. In particular,
forward looking statements in this news release include that the Company will be
able to finance exploration efforts and acquisition costs; that commodity
markets and copper prices will improve; that mapping, sampling, IP and
exploration drilling will be undertaken; that results will define mineralization
or high grade zones; that historical and new exploration will support a resource
on the property; and that the Groundhog assets have the potential to support
mining operations. These statements are subject to risks and uncertainties which
may cause results to differ materially from those expressed in the
forward-looking statements. A summary of risk factors that apply to the
Company’s operations are included in our management discussion and analysis
filings with securities regulatory authorities, and are publicly available on
our website. 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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
