SAN FRANCISCO, Feb. 06, 2019 (GLOBE NEWSWIRE) -- Quaterra Resources Inc. (QTA:TSX.V; QTRRF:OTCQX), a small-cap company with a portfolio of assets in the historical copper mining area of Yerington, Nevada, owns water rights, which are valuable assets in the deserts of Nevada. And it has begun to monetize them.
Company mentioned: Quaterra Resources Inc.
In September, Quaterra entered into a purchase agreement to sell certain primary ground rights to Desert Pearl Farms for $6.2 million. The State of Nevada Division of Water Resources needs to approve the change of the water rights from mining to agriculture, a process that is currently underway, and the company expects the deal to close shortly.
After the deal closes, Quaterra reported it will still have about 6,700 acre-feet per year of primary ground water permitted for mining.
"Based on the recent purchase and sale agreement, Quaterra's 6,700 acre-feet of primary ground water is valued at about US$20 million," explained Quaterra's Chairman and CEO Tom Patton.
Analyst Sid Rajeev with Fundamental Research Corp., in a September, 2018, report, placed a fair value estimate on Quaterra shares of CA$0.49 per share. With 257 million shares fully diluted, that valuation implies a market cap of about CA$126 million, or around US$96 million.
Continue reading this article: Why 4 Industry Analysts See This Company as Undervalued Based on Its Water Rights Alone
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