01/04/2015 - 12:01

Segue finds JV partner for Pardoo

01/04/2015 - 12:01

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Investors have welcomed news that Claremont-based Segue Resources has signed a joint venture agreement with Port Exploration at its Pardoo nickel and iron project in the Pilbara.

Segue finds JV partner for Pardoo

Investors have welcomed news that Claremont-based Segue Resources has signed a joint venture agreement with Port Exploration at its Pardoo nickel and iron project in the Pilbara.

Under the terms of the deal, Port must either become a subsidiary of an ASX-listed company or assign its interest to an ASX-listed company within six months.

Port will pay Segue a $50,000 fee to initiate the farm-in, and can acquire a 51 per cent interest in Pardoo by spending $250,000 on exploration within 12 months of signing the agreement.

Port also has the option to pick up a further 29 per cent stake by spending another $250,000.

If Port reaches 80 per cent ownership of the project, Segue will have the option to sell its remaining 20 per cent stake for shares in Port.

“The joint venture with Port Exploration will enable sufficient cash and technical resources to be spent at the Pardoo project over the next two years, thereby allowing Segue to concentrate its exploration activities on the Plumridge nickel project.” Segue managing director Steven Michael said.

The Plumridge nickel and gold project is Segue’s flagship asset, located in the Fraser Range.

Segue shares were 20 per cent higher at 0.6 cents per share at 12pm.

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