VANCOUVER, B.C. – Quaterra Resources Inc. (the “Company”) today announced that it is seeking TSX Venture Exchange and NYSE Amex approval for a non-brokered private placement offering (the “Offering”) of up to CDN $3,000,000 gross proceeds.
This Offering will allow the Company to issue shares to subscribers who previously indicated their interest in participating in the previous private placement that was announced on August 19, 2009 and closed September 29, 2009, but were unable to due to time and regulatory constraints.
The Offering will consist of up to a total of 5,000,000 Units at CDN $0.60 per Unit. Each Unit is comprised of one common equity share and one non-transferable full share warrant exercisable to purchase one additional common equity share at a price of CDN $0.75 for a period of two years subsequent to the closing of the Offering, which closing is anticipated to be on or before October 13, 2009 and is subject to both TSX-V and NYSE Amex acceptance.
Insiders are participating in the Offering to the extent of 1,016,742 Units, with such participation being by way of repayment of loans previously made by Insiders to the Company or in satisfaction of indebtedness of the Company incurred by reason of services rendered to the Company for which payment had been deferred.
The Offering is subject to restrictions on trading in Canada for a period of four months from the date of issue of such securities. In addition, in the United States, sales may only be effected outside the United States in accordance with Rule 904 of Regulation S and applicable State securities laws or effected in the United States in accordance with other exemptions from registration under U.S. securities laws and applicable State securities laws.
Finders’ fees may be paid in cash, securities or a combination thereof, by the Company in relation to this Offering.
Proceeds of the Offering will be used to fund the Company’s exploration programs at the Company’s Nieves and Americas-Mirasol silver and gold projects in Mexico and at the MacArthur and Yerington copper projects in Nevada, as well as general and administration expenses.