Quaterra Resources Inc. said Dec. 19 that its subsidiary Singatse Peak Services LLC intends to sell certain primary ground water rights associated with its MacArthur copper property in Yerington, Nev., to Desert Pearl Farms LLC and Desert Hills Dairy LLC for US$1.9 million.
Proceeds from the sale are earmarked for the MacArthur copper project, for assessing exploration opportunities and for general corporate purposes.
Under the purchase and sale agreements Quaterra struck with the buyers, the latter will deposit an initial earnest money into escrow, and the balance of funds will be paid upon the closing of the transaction.
The sale is set to close when the State of Nevada Division of Water Resources approves an application to change the manner of use of the water rights to agriculture and commercial, from mining and milling, as well as the transferring of title to the buyers.
Singatse will retain about 6,000 acre-feet annually of primary ground water permitted for mining on its property.
The sale of water rights is non-dilutive to shareholders.