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Streetwise Reports Examines Why 4 Industry Analysts See This Company as Undervalued Based on Its Water Rights Alone

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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DISCLOSURE:

The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Quaterra Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Quaterra Resources. Please click here for more information. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Quaterra Resources. Please click here for more information. Officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Quaterra Resources.

The full disclosure is provided at the article's end: Why 4 Industry Analysts See This Company as Undervalued Based on Its Water Rights Alone

For more information, please contact Carmen Guzman, Cguzman@streetwisereports.com.