Quaterra at $.115 a Share has $.17 in Cash and Water Rights
Quaterra Resources (QTA-V) owns the site of the old Anaconda Copper Mine near Yerington in Nevada just outside of Reno. Part of the deposit, the MacArthur deposit, contains over 1.6 billion pounds of inexpensive and easy to process oxide copper. It could be put into production for about $233 million. A 2012 PES believed there would be a cash cost of $1.89 a pound and a mine life of eighteen years.
Copper appears to be going into shortage and the price has been going up lately but Quaterra has something else valuable that the market ignores. When the company bought the project out of bankruptcy, they also got certain water rights. Remember, this is Nevada and water is both scarce and valuable.
The company just reported closing on a USD $6 million sales of some water rights to a local farmer. That sale is worth $.04 CAD a share. Not recognized by most readers of the press release was the bit about Quaterra retaining an additional $20 million USD of additional water rights. That would be worth about $.13 a share more. So by paying $.115 you get cash of $.04 a share and $.13 more worth of water and the copper project.
And who knows? Copper might go up one day and people want to mine it. Stranger things have happened.
Six million in the bank will buy Quaterra a lot of progress on their various projects. And in the worst case, they always have the water to sell.
Quaterra Resources Inc