Quaterra Resources (QTA.V) which owns the Yerington copper project in Nevada has been able to fill its treasury with a non-dilutive raise as it sold part of its existing water rights to Desert Hills Dairy LLC and Desert Pearl Farms LLC, two private companies in the region. An initial deposit has been placed in escrow but the final payment will only be due once the Nevada Division of Water Resources approves the application to change the allowed usage from mining to agriculture.
Upon closing the transaction, Quaterra will retain 6,000 acre-feet per year of ground water within the company which is almost twice as much as needed for the potential 50,000 tonnes per day sulphide mining operation on the property, and more than twice as much as needed for the oxide phase. This means the sale is bringing in a nice chunk of money without jeopardizing the future of the project.
Disclosure: The author has no position in Quaterra Resources.
