Segue raising to progress Emang project

THE BOURSE WHISPERER: Segue Resources has raised $2.079 million (before costs) through the issue of 69.3 million shares at three cents per share to sophisticated and institutional investors.

The placement price is a 6.3 per cent discount to the last traded price of 3.2 cents per share and a 3.3 per cent discount to the five day volume weighted average price (VWAP) of 3.1 cent per share.

Segue said the funds raised, combined with its existing cash reserves, will be used to:

Finalise the maiden JORC-compliant resource at the company’s Emang manganese project in South Africa, which is due to be released by the end of first quarter 2012;

Complete the second tranche payment to Emang Mmogo Mining Resources – the company’s Black Economic Empowerment partner in the project;

Commence a scoping study on the development of the project and assess potential alternatives for early cashflow; and General working capital and corporate expenses.

“Segue is on the cusp of becoming a significant new entrant in the manganese sector, with a maiden JORC resource at the Emang manganese project due late next month,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.

“With the funds raised Segue can now make the necessary payments to the project vendors and commence the first stage of project evaluation.

“The support shown by existing shareholders and new investors to complete a raising at such a small discount to the last trade reflects the excellent drilling results achieved at Emang and the potential of the project to contain a resource of 10 to 15 million tonnes of manganese ore grading between 28 to 40 per cent manganese.”