18/09/2015 - 10:15

Segue in $14m joint venture

18/09/2015 - 10:15

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Hong Kong-listed MMG is farming-in to Segue Resources’ Plumridge nickel project in the Fraser Range, in a deal worth $14 million.

Segue in $14m joint venture
Segue Resources' Plumridge nickel project in the Fraser Range.

Hong Kong-listed MMG is farming-in to Segue Resources’ Plumridge nickel project in the Fraser Range, in a deal worth $14 million.

Under the terms of the joint venture, MMG can earn a 51 per cent stake in the project by funding $6.5 million in exploration costs between now and December 2019.

It also has the option to increase its ownership in the project to 70 per cent if it invests an additional $7.5 million.

Segue is ranked #358 on our BNiQ list of public resources companies, while MMG owns and operates Golden Grove mine near Geraldton and is one of Western Australia's top 30 exporters.

The farm-in agreement means MMG will own a stake in eight tenements at the nickel project covering 2,250 square kilometres across the Fraser Range, with Segue to retain full ownership in three exploration licences including its Plumridge gold project and its Salt Creek project.

MMG will maintain all joint venture tenements during the earn-in period, and will manage all exploration activities.

“The joint venture with a leading diversified base metals company will provide the necessary resources, both financial and technical, to adequately explore the extensive tenement holding at the Plumridge nickel project,” Segue managing director Steven Michael said.

MMG has a highly skilled team of geologists and geophysicists who will help maximise the potential for a significant nickel-copper discovery at Plumridge with a large and accelerated exploration program.”

The deal was flagged on Wednesday when Segue entered into a trading halt, pending the announcement of a joint venture deal at Plumridge.

At the time, Segue shares were valued at 3 cents each.

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